SINGAPORE: The CBOT soybean May contract may test a support at $16.98 per bushel, a break below could cause a fall to $16.80-1/4.

The deep drop on April 22 suggests a completion of a wave c from $16.52 and a reversal of the uptrend from $15.76-3/4.

The contract may fall towards the bottom of the wave b at $16.52.

A realistic target will be either $16.98 or $16.80-1/4.

Resistance is at $17.26-1/2, a break above which could lead to a gain to $17.44-1/4.

On the daily chart, a bullish wedge became invalid, due to the deep drop towards this pattern.

China’s March soybean imports fall 18pc on year

The drop does not look like a simple pullback. A bullish target range of $18.12 to $18.56-3/4 has also been aborted.

The target range will only be resumed if the contract breaks $17.39-1/2 again.