July CBOT soybeans closed lower Thursday amid signs of weakening demand for U.S. oilseeds supplies. The market closed higher on the weekly chart.

Thursday's action saw the market punch to a new contract high at $15.21 intraday, before reversing to a lower close. The intraday rally hit a technical target at $15.20 1/4, the July 26, 2013, weekly continuation chart high. The trend pattern is bullish, but the reversal to a weaker close on Thursday is a red-flag warning signal. Also, daily momentum studies, including slow stochastics and the relative strength index are both at overbought levels. The momentum readings are a warning the market is vulnerable to correction at any time.

Nonetheless, the trend outlook remains positive. On the downside, old resistance at the April 9 high at $14.90 has become support. It would take declines under that zone to open the door to downside correction.

$15.21     -- the contract high 
   $14.71 3/4 -- the 10-day moving average 
   $14.45 1/4 -- the 20-day moving average 
   $14.15     -- the 40-day moving average 
   $10.54     -- the contract low 
 
JULY SOYBEAN MEAL -- combined pit and electronic trading

July CBOT soymeal also rallied to a new contract high but then retraced to a lower close at the final bell Thursday. The overall trend pattern remains bullish, but Thursday's lower close is a weak signal. Nonetheless, the new contract high offers resistance at $485, and gains through there would target additional strength to $490.00 and then $496.20, seen on the weekly continuation chart. The market closed just under minor support from the April 9 high at $478.70. Sustained declines under that area early in the week would suggest the market is vulnerable to some downside testing with major support at $461.80, the April 14 low. From a trend perspective, as long as $461.80 holds firm, the rising trend pattern is intact.

$485.00 -- the contract high 
   $470.40 -- the 10-day moving average 
   $463.40 -- the 20-day moving average 
   $450.50 -- the 40-day moving average 
   $293.30 -- the contract low 
 
July SOYBEAN OIL -- combined pit and electronic trading

July CBOT soybean oil closed slightly lower Thursday, but the contract posted a narrow "inside day" session. Strong gains were seen on the weekly chart. On the daily chart, the near-term trend pattern is positive. Gains through initial resistance at 43.95 cents would open the door for a bullish run back toward major resistance at 45.10 cents, the March 7 swing high. On the downside, the important levels to watch remain the same. Recent swing-low support is seen at 42.01 cents, the April 11 low. As long as that holds, the near-term focus will remain to the upside.

57.43 -- the contract high 
   42.69 -- the 10-day moving average 
   41.88 -- the 20-day moving average 
   42.25 -- the 40-day moving average 
   37.14 -- the contract low