By Jim Wyckoff

  Of DOW JONES NEWSWIRES

   DECEMBER CORN


  December corn prices Tuesday closed solidly higher, nearer the session high
and scored a bullish 'outside day' up on the daily bar chart. Short covering
and bargain-hunting end-user buying supported the market. Some hot weather
forecast in the coming days for the western Corn Belt was also supportive. A
bearish pennant pattern is still in place on the daily bar chart. However, a
big up day on Wednesday would negate that pattern. Traders will continue to
monitor the key 'outside markets' crude oil and the U.S. dollar. Those markets
were bearish Tuesday and did have corn under pressure early on. The bulls' next
upside price objective is to push and close prices above solid technical
resistance at $6.20. The next downside price objective for the bears is to push
and close prices below solid technical support at $5.80. First resistance for
December corn is seen at Tuesday's high of $6.16 1/4 and then at $6.20. First
support is seen at $6.10 and then at $6.05.

7.99 1/4 --- the contract high
6.15 

 10-day moving average
6.70 1/4 --- 20-day moving average
7.02 1/2 --- 40-day moving average
2.59 

 the contract low

   DECEMBER CBOT WHEAT


  December Chicago wheat prices Tuesday closed lower and nearer the session
high. Bearish 'outside markets' - sharply lower crude oil and a stronger U.S.
dollar - pressured wheat Tuesday. Bears still have the near-term technical
advantage. A five-week-old downtrend is in place on the daily bar chart. The
next downside price objective for the bears is pushing and closing prices below
solid technical support at last week's low of $7.98. The bulls' next upside
price objective is to push and close December futures prices above solid
technical resistance at this week's high of $8.55 a bushel. First resistance is
seen at Tuesday's high of $8.24 and then at $8.40. First support lies at
Tuesday's low of $8.02 and then at $7.98.

12.84 1/4 --- the contract high
8.24 1/2 --- 10-day moving average
8.44 1/2 --- 20-day moving average
8.68 1/4 --- 40-day moving average
4.00 1/2 --- the contract low

   DECEMBER KCBT WHEAT


  December Kansas City wheat prices Tuesday closed near the session high. Short
covering was featured. Bears still have the near-term technical advantage.
Prices are still in a five-week-old downtrend on the daily bar chart. The
bulls' next upside price objective is pushing and closing prices above solid
technical resistance at this week's high of $8.72 a bushel. The bears' next
downside objective is pushing and closing prices below solid technical support
at last week's low of $8.31 1/2. First resistance is seen at Tuesday's high of
$8.50 1/2 and then at $8.60. First support is seen at Tuesday's low of $8.35
and then at $8.31 1/2.

12.99 

 the contract high
8.52 3/4 --- 10-day moving average
8.72 3/4 
 20-day moving average
8.98 1/2 --- 40-day moving average
4.88 

 the contract low