July Chicago Board of Trade soybeans closed lower for the third session in a row on Tuesday. The market pressed lower amid speculation China will cancel more oilseeds shipments from the U.S. amid declining processing margins.

Technically, the soybean market is in the midst of a minor correction. The July contract remains under the influence of the April 17 bearish reversal on the daily chart. The market plunged under the April 9 high at $14.90 on Tuesday, which is a weak chart signal short term. Sustained declines under $14.90 would open the door to further correction. The next major chart support area lies at $14.44-$14.45, daily lows from mid-April.

Daily momentum studies have turned bearish and will keep the pressure on the market short term. Both slow stochastics and the relative strength index were overbought and are turning lower now.

On a very short-term basis, hourly momentum has hit oversold levels, which could allow the market to stabilize early on Wednesday. Initial resistance lies at $14.79 1/4. Gains above there would show the market is stabilizing.

$15.21     -- the contract high 
   $14.74 3/4 -- the 10-day moving average 
   $14.50 1/2 -- the 20-day moving average 
   $14.18 3/4 -- the 40-day moving average 
   $10.54     -- the contract low 
 
JULY SOYBEAN MEAL -- combined pit and electronic trading

July CBOT soymeal also tumbled lower, tracking soybean prices on the downside. The longer-term primary trend is bullish, but in the near term the market is in a minor corrective phase. The bears are gunning for a test of major support at $461.80, the April 14 low. That level needs to hold to keep the recent uptrend pattern intact. A break under $461.80 would be a negative chart signal and would open the door to perhaps a medium-term type of corrective decline.

On the upside, the contract high offers resistance at $485.

$485.00 -- the contract high 
    $471.80 -- the 10-day moving average 
    $466.20 -- the 20-day moving average 
    $452.60 -- the 40-day moving average 
    $293.30 -- the contract low 
 
JULY SOYBEAN OIL -- combined pit and electronic trading

July CBOT soybean oil closed lower, but posted an "inside day" formation, in which the high and low remained within Monday's range. The recent minor uptrend pattern remains intact for now. But the chart appears heavy. Watch action around initial support at 42.89 cents. Declines under 42.89 cents would open the door for a quick test of 42.74 cents and then possibly 42.01 cents, the April 11 low. The 42.01-cent low needs to hold firm to keep the uptrend pattern intact. Initial resistance remains at 43.95 cents.

57.43 -- the contract high 
   42.97 -- the 10-day moving average 
   42.08 -- the 20-day moving average 
   42.34 -- the 40-day moving average 
   37.14 -- the contract low