By Jim Wyckoff

  DOW JONES NEWSWIRES

DECEMBER CORN


  December corn prices Tuesday closed solidly lower, nearer the session low and
hit another fresh 4 1/2-month low amid still-bearish "outside markets" -
sharply lower crude oil and a stronger U.S. dollar - and still-non-threatening
weather in the Corn Belt. Serious chart damage has occurred recently to suggest
a major market top is in place and that the path of least resistance in corn
will remain sideways to lower for at least the near term. The bulls' next
upside price objective is to push and close prices above solid technical
resistance at this week's high of $5.84 1/2. The next downside price objective
for the bears is to push and close prices below solid technical support at the
March low of $5.13 1/4. First resistance for December corn is seen at $5.50 and
then at $5.62 3/4. First support is seen at Tuesday's low of $5.36 1/4 and then
at $5.25.

7.99 1/4 --- the contract high
5.90 3/4 --- 10-day moving average
6.27 

 20-day moving average
6.92 1/2 --- 40-day moving average
2.59 

 the contract low

DECEMBER CBOT WHEAT


  December Chicago wheat prices Tuesday closed higher and near mid-range after
hitting a fresh nine-week low early on. Prices did score a bullish "outside
day" up on the daily bar chart Tuesday. Short covering and some fresh U.S.
export demand boosted the market Tuesday. But the bears still have the overall
near-term technical advantage in wheat. Bearish "outside markets" - sharply
lower crude oil prices and a stronger U.S. dollar - limited the upside in
wheat. A six-week-old downtrend is still 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 the May low of $7.68. The bulls' next upside price
objective is to push and close December futures prices above solid technical
resistance at Tuesday's high of $8.31 1/2 a bushel. First resistance is seen at
$8.10 and then at $8.20. First support lies at $7.98 and then at $7.80.

12.84 1/4 --- the contract high
8.12 

 10-day moving average
8.24 3/4 --- 20-day moving average
8.66 3/4 --- 40-day moving average
4.00 1/2 --- the contract low

DECEMBER KCBT WHEAT


  December Kansas City wheat prices Tuesday closed higher and near mid-range
after hitting a fresh 2 1/2-month low early on. Prices also scored a bullish
"outside day" up on the daily bar chart. Bears still have the near-term
technical advantage. Prices are still in a six-week-old downtrend on the daily
bar chart. The bulls' next upside price objective is pushing and closing prices
above solid technical resistance at Tuesday's high of $8.58 a bushel. The
bears' next downside objective is pushing and closing prices below solid
technical support at Tuesday's low and the May low of $8.14. First resistance
is seen at $8.40 and then at $8.50. First support is seen at $8.25 and then at
$8.14.

12.99 

 the contract high
8.42 

- 10-day moving average
8.54 3/4 --- 20-day moving average
8.97 

 40-day moving average
4.88 

 the contract low