SINGAPORE: The CBOT soybean May contract may drop into a range of $15.80-3/4 to $15.98-3/4, following its failure to break a resistance at $16.46-1/4 per bushel.

The failure suggests a steady downtrend from $17.36-1/2, as a falling trendline remains intact.

Unless the contract could break $16.46-1/4 on Thursday or Friday, it is highly likely to revisit the April 4 low of $15.76-3/4.

A break above $16.46-1/4 could lead to a gain into $16.67-1/2 to $16.93-3/4 range.

On the daily chart, the consolidation is confined within a presumed wedge, the upper trendline of which suggests a target of $17.13-1/2.

CBOT soybeans may test resistance at $16.46-1/4

However, the exact course towards this target looks unclear. Most likely, the rise could adopt a zigzag mode, as suggested by the readings on the hourly chart.

A return of the price into the zone of $15.77 to $15.94-1/4 would be essential for a solid bottom to form around $15.77.