July CBOT corn futures shrugged off three days of losses to close sharply higher Tuesday. Weather forecasts for rain in parts of the Midwest on Wednesday and Thursday boosted corn to higher levels, as the weather will likely delay spring planting even further. As of Sunday, about 6% of the U.S. corn crop was seeded, which is below the average of 14% for this time of year.

Technically, the rally is a positive signal as it propelled the market back above the $4.99 3/4-$4.95 3/4 zone. That area is a minor zone of congestion on the daily chart and represents the lower end of a small range. Monday's rally took the market below that range. But, the quick reversal higher marks Monday's sell-off as a bear trap.

Near-term consolidation between $4.99 3/4-$4.95 3/4 and resistance at $5.13-$5.17 is possible near term as the corn market awaits fresh fundamental news.

The intermediate-term outlook remains bullish for now.

$6.76     -- the contract high 
   $5.05     -- the 10-day moving average 
   $5.03     -- the 20-day moving average 
   $4.93     -- the 40-day moving average 
   $4.21 3/4 -- the contract low 
 
JULY CBOT WHEAT, combined pit and electronic trading

July CBOT wheat gained moderately on Tuesday. The market is trading within the confines of a well-defined range on the daily chart between major resistance at $7.25 1/4-$7.18 1/4 and major support at $6.63 3/4.

Choppy range trade could be seen near term within that large range. The market has been oscillating back and forth within that range since March 20. The intermediate-term trend remains bullish, but the multi-week near term trend is neutral in that range.

The April 10 low at $6.63 3/4 represents the bottom of the range and key near-term support. If that floor were to give way it would trigger a bearish chart signal and open the door to a fresh selling wave.

$8.57 3/4 -- the contract high 
   $6.85     -- the 10-day moving average 
   $6.89 1/4 -- the 20-day moving average 
   $6.75 3/4 -- the 40-day moving average 
   $5.57 1/4 -- the contract low 
 
JULY KC WHEAT, combined pit and electronic trading

July Kansas wheat also bounced to a higher close Tuesday. The near-term trend remains corrective, however. Resistance lies at $7.80 1/4, the April 16 high and it would take a rally through that ceiling to improve the near-term outlook. On the downside, the April 11 low at $7.23 1/4 is important support. If that floor were to crack, it would suggest the bears will press for a more substantial downside correction in the market.

$8.67     -- the contract high 
   $7.47 3/4 -- the 10-day moving average 
   $7.54     -- the 20-day moving average 
   $7.39     -- the 40-day moving average 
   $5.99     -- the contract low