MAY CBOT CORN, combined pit and electronic trading

May CBOT corn futures rallied early, but then reversed to a lower close Wednesday. The daily action etched a large bearish shooting star formation on the daily candlestick chart, which is a negative pattern and gives the bears the edge short term.

Corn posted a volatile session following a monthly USDA supply and demand report. The USDA estimated U.S. corn stockpiles at the end of the 2013-14 season at 1.331 billion bushels. That compares with analysts' estimates for 1.403 billion bushels and the government's forecast last month of 1.456 billion. While the stockpiles number came in below market expectations, overall supplies remain plentiful.

Technically, the action suggests a minor, short-term top may have formed at the $5.19 intraday high. The near- and medium-term bull trends remain intact, but a potential bearish divergence is seen on daily momentum readings, and the market is vulnerable to some "backing and filling" near term.

Short term, there is a strong band of support in the $4.92-4.90 zone, which could stall selling pressure. If that were to give way, additional selling pressure could be seen with major support at $4.75.

Minor resistance lies at $5.08 1/4. Major resistance at $5.19.

$6.76 1/2 -- the contract high

$4.99 3/4 - -the 10-day moving average

$4.92 - the 20-day moving average

$4.79 1/2 -- the 40-day moving average

$4.14 1/2 -- the contract low

MAY CBOT WHEAT, combined pit and electronic trading

May CBOT wheat tumbled to a lower close Wednesday, following the USDA report that said world inventories at the end of the current marketing year on May 31 would total 186.7 million metric tons. That compares to pre-report estimates at 183.7 million tons.

Technically, May wheat posted a bearish outside day on the daily chart, which is a negative one-day formation and gives the bears the edge. The action defines Wednesday's intraday high at $6.88 as important near-term resistance and a possible short-term top.

The bears are targeting a test of support at $6.58 3/4.

The primary trend off the late January low remains bullish. But, the near-term outlook remains corrective. The recent corrective pullback had stalled at the April 4 low at $6.58 1/2, which represented a 38.2% Fibonacci retracement of the late January to late March rally move. That support floor could come under fire near term. If support at $6.58 3/4 gives way, a renewed downside correction could emerge, with additional Fibonacci retracement supports at $6.38 1/2 and $6.18 1/2.

$8.98 --the contract high

$6.82 3/4 -- the 10-day moving average

$6.89 1/2 -- the 20-day moving average

$6.56 -- the 40-day moving average

$5.53 1/2 -- the contract low

MAY KC WHEAT, combined pit and electronic trading

May Kansas wheat also erased early gains and closed lower. The bears are targeting a retest of support at $7.24 1/2 the April 4 low and also 38.2% of the major rally move seen from late January into the late March high. If support at $7.24 1/2 gives way, a 50% retracement is seen at $7.01. On the upside, Wednesday's high is now resistance at $7.49 1/4. Market is vulnerable to downside testing.

$9.40 - - the contract high

$7.49 1/2 -- the 10-day moving average

$7.59 1/4 -- the 20-day moving average

$7.25 3/4 -- the 40-day moving average

$6.05 -- the contract low