July CBOT corn futures tumbled to a lower close Monday, as dry weather is forecast for the eastern Midwest this week, which should allow farmers to accelerate spring planting.

Technically, Monday's selloff is a weak signal. The market broke through a band of support in the $4.99 3/4-$4.95 3/4 zone. If the market sustains losses under that area on Tuesday the market will be vulnerable to a more significant corrective pullback. The next important chart support area isn't seen until the $4.81-$4.80 area.

Daily momentum studies are pointing lower, which will give the bears the edge near term. Both slow stochastics and the relative strength index are trending lower, from previously overbought levels.

Old support at $4.99 3/4 now becomes resistance. The bulls would need to rally above resistance $4.99 3/4 to improve the short-term chart outlook. The near term trend outlook is turning down. The intermediate term outlook remains bullish for now.

$6.76     -- the contract high 
   $5.05 1/4 -- the 10-day moving average 
   $5.02 3/4 -- the 20-day moving average 
   $4.92     -- the 40-day moving average 
   $4.21 3/4 -- the contract low 
 
JULY CBOT WHEAT, combined pit and electronic trading

July CBOT wheat collapsed to a sharply lower close Monday, as rain in the forecast in parts of the U.S. southern Great Plains states could improve conditions for the winter wheat crop.

Technically, the action represents a failure from the recent rally back toward the late March high. The April 16 daily high touched $7.18 1/4, shy of the $7.25 1/4 ceiling scored on March 20. Action on April 16th etched a minor bearish reversal and the market tone remains weak.

The bears are gunning for a retest of important chart support at the April 10 low at $6.63 3/4. Watch action around the floor closely. If the bears were to drive prices under $6.63 3/4 it would be a strong bearish signal and would open the door to a fresh selling wave.

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 bears have the edge near term.

$8.57 3/4 -- the contract high 
   $6.85 1/4 -- the 10-day moving average 
   $6.91     -- the 20-day moving average 
   $6.74 1/4 -- the 40-day moving average 
   $5.57 1/4 -- the contract low 
 
JULY KC WHEAT, combined pit and electronic trading

July Kansas wheat also pressed to a sharply lower close. On the downside, the April 11 low at $7.23 1/4 has formed an important swing low for now, and that is a key bearish target near term. Resistance lies at $7.80 1/4, but that zone could remain out of reach near term. The near term chart pattern is weak.

$8.67     -- the contract high 
   $7.47 3/4 -- the 10-day moving average 
   $7.56 1/4 -- the 20-day moving average 
   $7.37 1/4 -- the 40-day moving average 
   $5.99     -- the contract low