It's the strong fundamentals that are supporting meal,” Wang Wenpei, chief analyst at Wanda Futures Co., said by phone from Beijing. “We haven't seen signs of higher prices curbing feed demand because feed mills are still buying.”

China's soybean imports jumped 20 percent to 34.92 million tons in January to July compared with same period last year, according to customs data. September's shipments may decline to 3.85 million tons from the 4.53 million tons estimated for August, the Ministry of Commerce said yesterday.

Eoin Treacy's view The USA's drought remains the defining variable in the price of grains and beans. It has persisted for long enough that regardless of how much rain falls between now and harvest, yields for some commodities are going to be well below last year's. While the US has had poor crops before, the historically low global stockpile of grains and beans has contributed to the outsized price response to this drought.

Soybeans consolidated in the region of the 2008 peak for approximately six weeks before reasserting its uptrend. This remains a highly charged environment so when a reversal eventually occurs it is likely to happen in a dynamic fashion. A sustained move below 1650¢ would trigger an MDL stop (as taught at The Chart Seminar) and suggest supply dominance. Soybean Meal has posted two reactions of approximately 60¢ since December. A larger reaction would be required to signal supply is returning to dominance beyond the short term. Soybean Oil is testing the upper side of its 20-month range and a sustained move above 60¢ would be required to reassert the medium-term uptrend.

Oats continues to test 400¢ and last year's peak. A sustained move below 370¢ would be required to question medium-term potential for continued higher to lateral ranging.

Corn has at least paused mostly above 800¢ and would need to conclusively break below that area to suggest a return to supply dominance beyond the short term.

Wheat has formed a triangular range around 900¢ from mid July. When a breakout comes it is likely to be emphatic. Considering the commonality of the sector wheat's range is currently more likely to be resolved to the upside.