July Chicago Board of Trade corn futures closed lower for the second session in a row Thursday. The contract posted losses on the weekly chart as well. In the very short term, a minor top has formed at the $5.24 1/4 high hit on April 9. The near-term trend is vulnerable to downside correction or consolidation.

The market is pressing into a band of support in the $4.99 3/4-4.95 3/4 zone. Watch action around this area closely at the start of the week. If sustained declines are seen under that area, it would register a bearish chart signal and would open the door to further losses. The next significant support floor isn't seen until the $4.81-4.80 area.

Daily momentum studies are beginning to trend lower, which is a bearish signal. The bears have the edge near term.

On the upside, the bulls would need to rally above initial resistance at $5.13 to improve the short-term chart outlook. The near-term trend outlook is sideways to lower.

$6.76     -- the contract high 
   $5.06 3/4 -- the 10-day moving average 
   $5.02     -- the 20-day moving average 
   $4.91 1/4 -- the 40-day moving average 
   $4.21 3/4 -- the contract low 
 
JULY CBOT WHEAT, combined pit and electronic trading

July CBOT wheat closed higher Thursday, as cold weather and dry soil conditions threaten the U.S. winter-wheat crop. Technically, the market posted a consolidative "inside day" Thursday, as the high and low remained within Wednesday's range. Strong gains were seen on the weekly chart.

For now, the market is trapped in a well-defined range between major resistance at $7.25 1/4, the March 20 daily high, and major support at $6.63 3/4, the April 10 daily low. The intermediate-term trend remains bullish. But, the near-term trend is neutral and consolidative within that range.

The bulls would need to pierce resistance to extend the rally and open the door to a fresh buying wave. Conversely, declines under support would be a bearish signal and signal a more substantial downside correction period.

Daily momentum studies are mixed. The market is in a short-term holding pattern. Short-term resistance lies at $7.18 1/4, and short-term support lies at $6.90 3/4. Traders can look for a break of resistance or support to signal the next directional play.

$8.57 3/4 -- the contract high 
   $6.85 1/2 -- the 10-day moving average 
   $6.92 1/4 -- the 20-day moving average 
   $6.72 3/4 -- the 40-day moving average 
   $5.57 1/4 -- the contract low 
 
JULY KC WHEAT, combined pit and electronic trading

July Kansas City wheat closed higher Thursday, but posted an inside day session. The key chart points remain the same. The $7.80 1/4 zone stands as short-term resistance and the level the bulls need to rally through to target higher levels. Beyond there, a major bullish target lies at the $7.94 1/2 ceiling. On the downside, the April 11 low at $7.23 1/4 has formed an important swing low for now. The intermediate-term trend is neutral and choppy between $7.94 1/2 and $7.23 1/4.

$8.67     -- the contract high 
   $7.47 1/4 -- the 10-day moving average 
   $7.57 1/2 -- the 20-day moving average 
   $7.35 1/4 -- the 40-day moving average 
   $5.99     -- the contract low