Hot weather has prompted Argentina, the world's top exporter of soymeal livestock feed, to shave its estimate for its upcoming soy crop to 46 million tonnes, from 46.5 million tonnes earlier.
A retracement analysis on the fall from 3,888 ringgit to 3,160 ringgit reveals a target of 3,438 ringgit, the 38.2% level, which is near 3,426 ringgit.
Resistance is at $5.20-1/2, a break above which could lead to a gain to $5.24-1/2. On the daily chart, the contract is falling towards the Jan. 20 low of $5.12-3/4.