Soybeans and Meal: 5th wave Cometh

John LunneyGeneral Commentary

July Soybeans

      It appears to me that we have entered the 5th wave of an smaller degree. I have expressed this outlook several times in earlier posts. I look for the contract to unwind to new lows. Temporary support comes in at +/- 920. Target for wave extension checks in at 900 to 895. A rise above 944 negates this outlook. I have observed certain structural developments in the agricultural markets. Namely being sloppy and steep ii waves and complex and extended iv wave corrections. This recent the wave structure displays such characteristics. New information ,as it is made available, will be analyzed for further clues.

 

July Meal

     Same story playing out in the meal contract. First support zone coming in at +/-301. Wave extension target checks in between 295.0-292.0. A breach of 310.6 negates this setup. Stay tuned for further updates as new and unfolding structure makes itself available.