SINGAPORE: The CBOT soybean March contract may drop to $13.57-3/4, as it failed twice to break a resistance at $13.80-1/2 per bushel.

The two failures suggest the formation of a top around $13.80-1/2.

The rise from the Feb. 3 low of $13.42-1/2 looks more like the final part of a bounce from the Jan. 29 low of $13.35-1/2.

A downwards wave C could be progressing, which is capable of traveling far below $12.98. A break above $13.80-1/2 could lead to a gain to $13.94-3/4.

On the daily chart, the contract looks directionless within a neutral range of $13.54-1/2 to $13.97. Based on the signals on the hourly chart, it may break $13.54-1/2 and drop towards $13.03-3/4.

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