Dalian soya bean meal futures have soared faster than we expected, hitting 3,350 yuan per tonne on Friday. The contract managed its biggest weekly rally in years, which, following five strong rallies in previous weeks, underlines the serious demand for this product. It has already retraced almost half the losses since late 2012, stopping at long-term trend-line resistance. For this reason, we will favour a couple of weeks or so of consolidation at roughly between 3,150 and 3,500 yuan per tonne. A retreat to Fibonacci retracement support at the flat-topped old cloud at the psychological 3,000-yuan level is seen as another buying opportunity in the expectation for more gains later this year.
