MAY CBOT CORN, combined pit and electronic trading

May CBOT corn futures tumbled to a lower close Wednesday, pressured by concerns that the recent rally to seven-month highs could depress foreign demand for U.S. supplies at the higher price levels.

Technically, the retreat is a weak signal and could mark the recent rally move to the April 1 high as a "bull trap" breakout, which suggests the rally couldn't be sustained, and that the bulls have lost control of the market.

On Wednesday, the market fell back under support at $5.02 1/2, the March 7 high, and pierced $4.93 1/4, the March 13 daily high, on an intraday basis. The corn market could be simply retreating back within its recent sideways range.

The market is falling back from a failed test of $5.13, the Sept. 3, 2013, spike high and daily resistance point. That zone remains a major resistance ceiling.

Near term, the market is likely to see choppy trade back within the roughly $5.00-$4.75 range. If the market holds under $5.00 the bears will likely press for a push back toward the bottom of the recent range.

Daily momentum studies show the indicators turning lower from overbought levels, which is bearish sign and could keep the focus on the downside short-term.

$6.76 1/2 -- the contract high 
$4.90 3/4 -- the 10-day moving average 
$4.88     -- the 20-day moving average 
$4.72 3/4 -- the 40-day moving average 
$4.14 1/2 -- the contract low

MAY CBOT WHEAT, combined pit and electronic trading

May CBOT wheat plunged sharply lower Wednesday, pressured by forecasts for rain in the Great Plains states, which could boost prospects for the U.S. winter wheat crops.

Technically, the market plunged to its lowest level since March 12. The near-term trend has turned bearish. A minor top and major resistance is seen on the daily chart at the $7.23 1/2 ceiling hit on March 20.

Daily momentum studies have turned down from previously overbought levels. The tools are trending lower and will support additional near-term price declines. May wheat is now trading under its 20-day moving average, which is a short-term bearish signal.

The market slid under support at $6.69 3/4, the March 14 daily low on Wednesday. Watch that zone to see if wheat could stabilize around that area. If that floor gives way, wheat will be vulnerable to a continuing corrective decline.

A Fibonacci retracement can be drawn on the daily chart off the late January low to the late March high. A continuing corrective decline could test some or all of these retracement points in the days ahead at $6.58 1/2 (38.2%), $6.38 1/2 (50%) and $6.18 1/2 (6.18%). These are potential support floors and bearish targets if further losses unfold.

For now the intermediate term trend off the late January low remains bullish and this selloff can be considered corrective.

Minor resistances are seen at $6.76 1/2 and $7.02.

$8.98     --the contract high 
$6.97 1/4 -- the 10-day moving average 
$6.85     -- the 20-day moving average 
$6.44 3/4 -- the 40-day moving average 
$5.53 1/2 -- the contract low

MAY KC WHEAT, combined pit and electronic trading

May Kansas wheat plunged lower in a corrective move Wednesday. The market remains vulnerable to additional losses near term. The 40-day moving average remains below the market at $7.14 and could act as a target and support near term. Major resistance remains at $7.99. Minor resistance lies at $7.68 1/2.

$9.40     -- the contract high 
$7.71 1/4 -- the 10-day moving average 
$7.55 3/4 -- the 20-day moving average 
$7.14     -- the 40-day moving average 
$6.05     -- the contract low