SINGAPORE: The CBOT soybean July contract may test a support zone of $16.56-1/2 to $16.61-1/2 per bushel.

A break could open the way towards $16.46-3/4. A zigzag or a big five-wave cycle is developing.

Under both of these scenarios, the contract may drop to $16.61-1/2 or $16.22-3/4. Resistance is at $16.85-1/2, a break above which could lead to a gain to $17.00-1/4.

China’s soybean imports from Brazil fall in May, US shipments jump

On the daily chart, the contract has broken a support at $16.85.

It is falling towards $16.44-1/4 to $16.64-3/4 range.