SINGAPORE: The CBOT soybean January contract may test a support at $12.39-1/2 per bushel, a break could cause a fall into the range of $12.14 to $12.30.

The contract is presumed to be riding on a wave c from $12.14-1/4, which is expected to travel into a range of $12.80-3/4 to $13.22-1/4.

The performance of this wave was really disappointing, as it failed to travel above a short falling trendline.

The failure suggests that either this wave may have a complex structure or the wave count is incorrect.

Resistance is at $12.55-1/2, a break above could lead to a gain into $12.68-1/4 to $12.80-3/4 range.

On the daily chart, the contract slid below a support at $12.51-1/2.

It may drop more towards $12.24-1/2.

The drop could be the second pullback towards a falling trendline or a resumption of the downtrend from $14.79.

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