September Soybeans
Today’s action sees prices violate through weekly low and unravel. Trigger levels were discussed in yesterday’s post. Contract slid to support zone of 979-977. This is a big level as we have reached the inner trend-line comeback , mid level Fib retracement and prior 4 wave low convergence point. Also,weekly range is already roughly 60 cents with ATR at close to 40. Save level just underneath at 974. A hold beneath 976 won’t look good. Next downside zone support comes in at 963-958. Extreme flush targets +/- 953. If market is able to stave off further pressure it will first have to fortify 988.4. A continued advance targets +/- 1007-1009.
Soybean Meal
Meal contract reacts in similar fashion after violating trigger level. A full out rug pull unfolds as prices quickly erode to posted support level zone to settle just off lows at 319.9. Immediate support comes into play at 317-316. A hold below 316 follows through to +/- 310 at the .786 retracement level. Any attempt to rally will first deal with the 323-324 level. If contract can gain it’s footing it will target +/- 332 level.
Soybean Oil
Not as violent of a selloff takes place in the oil market today. As suggested the oil contract came under early pressure and retreated to suggested support target level at 33.20 to post low at 33.15 before settling at 33.19. Contract will have to stabilize above 33.20 to avoid further weakness. A modest rise will target +/- 33.50. Above here extends to 33.60-33.70. A failure to hold closing level will look to press lower with underneath target resting at +/- 32.75.