SINGAPORE: The CBOT soybean July contract may drop further into a range of $13.13-1/2 to $13.27 per bushel, as suggested by a pennant and a projection analysis.

The pattern indicates a target of $13.27. Based on a projection analysis, the contract may slide to $13.13-1/2. The bounce triggered by the support at $13.35-1/4 may be limited to $13.48-3/4.

Another projection analysis on the downtrend from $14.46-3/4 suggests a target of $13.02-1/4 as the contract has broken the 100% level of $13.42-1/4.

On the daily chart, a projection analysis on a wave C and a bigger wave (C) suggests the same target of $12.82.

Soybean, corn prices under pressure on US supply outlook

A realistic target is $13.20.

The contract is pulling back towards the former support zone of $13.43-1/4 to $13.44-1/2. A close above $13.44-1/2 on Thursday could signal the break below the zone was false.

The contract may then consolidate around $13.44 for a few days.