SINGAPORE: The CBOT soybean July contract may bounce into a range of $13.48-3/4 to $13.56 per bushel, as it has stabilized around a support at $13.27.

The strong reaction of the market to this support on Thursday suggests the formation of a temporary bottom.

A bounce may have started which could be of the same degree to the one from the May 11 low of $13.85-1/4.

A break above $13.48-3/4 may lead to a gain into $13.56-1/4 to $13.62 range, while a break below $13.27 could open the way towards $13.13-1/2.

Soybean, corn prices under pressure on US supply outlook

On the daily chart, a projection analysis on a wave C and a bigger wave (C) suggests the same target of $12.82. However, the doji forming during the previous session represents the dissipation of the bearish momentum.

The trend is expected to experience a bounce before resuming towards the target of $12.82.

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