By Jim Wyckoff

  DOW JONES NEWSWIRES

JULY CORN


  Chicago Board of Trade July corn prices Wednesday closed solidly higher and
near mid-range but did hit a fresh contract and all-time high, following an
as-expected bullish USDA report issued Wednesday morning. More importantly,
however, the key "outside" markets aligned in bullish formation and traded
strongly higher in crude oil and gold and sharply lower for the value of the
U.S. dollar. These outside markets will continue to have a major influence in
the grains. Corn bulls still have the near-term technical advantage, amid still
no early technical clues that a market top is close at hand. The corn bulls'
next upside price objective is to push and close prices above resistance at
Wednesday's contract high of $6.28 1/4. The next downside price objective for
the bears is to push and close prices below solid support at $6.00. First
resistance for July corn is seen at Wednesday's contract high of $6.28 1/4 and
then at $6.35. First support is seen at $6.15 and then at $6.10.

6.28 1/4 --- the contract high
5.98 

 10-day moving average
5.77 

 20-day moving average
5.66 3/4 --- 40-day moving average
2.65 

 the contract low

JULY CBOT WHEAT


  CBOT July wheat prices Wednesday closed weaker and near mid-range. Wednesday
morning's USDA report was deemed neutral for wheat. The key "outside" markets
aligned in bullish formation Wednesday and traded strongly higher in crude oil
and gold and sharply lower for the value of the U.S. dollar. These outside
markets did limit selling interest in a bearish wheat market and they will
continue to have a major influence in the grains. Prices are still in a
four-week-old downtrend on the daily bar chart. The bulls' next upside price
objective is to push and close July futures prices above major psychological
resistance at $10.00 a bushel. The next downside price objective for the bears
is pushing and closing prices below solid support at last week's low of $9.05 a
bushel. First resistance is seen at Wednesday's high of $9.73 and then at
$10.00. First support lies at $9.33 and then at Wednesday's low of $9.14.

12.72 3/4 --- the contract high
9.85 3/4 --- 10-day moving average
10.30 
-- 20-day moving average
10.27 1/2 --- 40-day moving average
3.72 

 the contract low

JULY KCBT WHEAT


  July Kansas City wheat prices Wednesday closed firmer and nearer the session
high. A four-week-old downtrend is still in place on the daily bar chart. The
bulls' next upside price objective is pushing and closing prices above solid
technical resistance at last week's high of $10.50 a bushel. The bears' next
downside objective is pushing and closing prices below solid support at last
week's low of $9.55. First resistance is seen at Wednesday's high of $10.16 and
then at this week's high of $10.35. First support is seen at $9.81 and then at
$9.65.

13.00 

 the contract high
10.04 3/4 --- 10-day moving average
10.75 1/4 --- 20-day moving average
10.85 3/4 --- 40-day moving average
4.36 

 the contract low