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Sellers take over soybean market

12/24/2013 @ 9:28am

January CBOT soybeans tumbled moderately lower Monday, pressured by news of rain in South America, which would support the currently growing soybean crops there. In recent days, hot and dry weather conditions had boosted soybean prices in Chicago.

Technically, the market traded within recent ranges and broke no new ground higher or lower. Since Dec. 2, January soybeans have been posted choppy and consolidative neutral trade between support at $13.11 1/4 and resistance at $13.53 1/2. Those remain the key chart points to watch near term. Given the quiet holiday conditions, near term range trade could be seen within that support and resistance.

If however, a strong and sustained breakout is seen above resistance or below support, it would signal a new directional move.

Recent action has shown the bulls fail on several attempts near the $13.50 level. There appear to be willing sellers in that price zone. A retreat toward the range bottom is possible near term.

$14.09 3/4 -- the contract high 
   $13.33 1/2 -- the 10-day moving average 
   $13.30 3/4 -- the 20-day moving average 
   $13.06     -- the 40-day moving average 
   $ 9.22 1/2 -- the contract low 
JANUARY SOYBEAN MEAL -- combined pit and electronic trading.

January CBOT soymeal closed lower Monday. The technical uptrend off the early November low is vulnerable. The Dec. 18 push to a new contract high etched a bearish reversal day on the daily chart. As long as resistance at $454.00 remains intact, the market will remain under that negative influence. On the downside, initial support lies at $437.30. If that level were to fall, it would confirm a short-term top on the daily chart and open the door to a quick test of support at $425.90, the Dec. 13 low.

$454.00 -- the contract high 
   $440.10 -- the 10-day moving average 
   $435.50 -- the 20-day moving average 
   $420.20 -- the 40-day moving average 
   $234.00 -- the contract low 
   JANUARY SOYBEAN OIL -- combined pit and electronic trading.

January CBOT soybean oil closed lower Monday, but posted a narrow inside day session. The market is consolidating following last week's minor bullish reversal on Dec. 19. The 38.94 low hit on Dec. 19 is now important short-term support and may develop into a short-term floor as the market consolidates the recent declines. On the upside, minor chart resistance lies at 40.22.

59.89 -- the contract high 
   39.66 -- the 10-day moving average 
   40.06 -- the 20-day moving average 
   40.60 -- the 40-day moving average 
   38.94 -- the contract low

Write to Kira Brecht at copydesk@dowjones.com

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(END) Dow Jones Newswires

December 24, 2013 08:00 ET (13:00 GMT)

DJ Sellers Take Control Of Soybeans - Technical Analysis->copyright

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