May CBOT soybeans turned lower Thursday, pressured by reports that Chinese importers defaulted on purchases of at least 500,000 metric tons of U.S. and Brazilian oilseeds.

Technically, the retreat isn't a surprise following Wednesday's midrange close.

The overall trend pattern remains positive, but the bulls have shown a lack of upside follow-through in recent days. Daily momentum studies are overbought, or turning down from overbought levels and could support a near-term correction or consolidation phase.

There is a strong band of congestive support in the $14.62-$14.56 area, from the daily chart. That is a target for the bears. If that area were to give way, it would be a short-term bearish signal.

Resistance lies at $14.95 and then $5.12. However, recent action suggests the bulls are tiring and are in need of a consolidation phase.

Looking at the bigger picture, the market posted an upside breakout from a bullish continuation triangle formation on the daily chart last week, and that remains intact for now. The triangle targets multiday to multiweek gains to the $15.50 area. Support at $14.62-$14.56 needs to hold to keep the triangle target in play.

$15.12     -- the contract high 
   $14.72     -- the 10-day moving average 
   $14.46     -- the 20-day moving average 
   $14.17 1/2 -- the 40-day moving average 
   $11.29     -- the contract low 
 
 MAY SOYBEAN MEAL -- combined pit and electronic trading

May CBOT soymeal closed lower Thursday, as the market posted a consolidative "inside day" session, in which the high and low remained within Wednesday's range.

The market remains under the influence of the April 9 "bearish shooting star" candlestick formation, which warns of a possible short-term top. Resistance now lies at $490.90, the contract high hit Wednesday. But that level could remain out of reach in the short term.

Daily momentum studies are turning down from overbought levels, which is a bearish signal and suggests the market is vulnerable to a period of consolidation or downside correction. Short-term support lies at $471.70, the April 4 daily low. If that were to give way, it would open the door to a deeper near-term decline.

Overall, for now, the primary bull trend remains intact.

$490.90 -- the contract high 
   $478.00 -- the 10-day moving average 
   $468.80 -- the 20-day moving average 
   $457.10 -- the 40-day moving average 
   $303.00 -- the contract low 
 
 MAY SOYBEAN OIL -- combined pit and electronic trading

May CBOT soybean oil closed slightly lower after an "inside day" session. Nonetheless, the short-term technical bias remains positive. The market has scored an important swing low at 39.85 cents, the low hit on March 31, and has been rallying from that area in recent days. The 42.96-cent zone stands as initial resistance, with additional targets at 43.72 cents and a major ceiling at 45.05 cents, the March 7 high.

As long as support at 41.11 cents--the April 8 low--remains intact, the bulls will continue to eye higher price levels in the days ahead.

57.43 -- the contract high 
   41.53 -- the 10-day moving average 
   41.45 -- the 20-day moving average 
   41.75 -- the 40-day moving average 
   37.14 -- the contract low