By Jim Wyckoff
    DOW JONES NEWSWIRES


  DECEMBER CORN

  December corn on Thursday closed lower, near the session low and closed at a
fresh two-month low close. The key "outside markets" were bullish for corn
futures Thursday, as the U.S. stock indexes were higher, crude oil  was higher
and the U.S. dollar was weaker. However, corn sold off anyway,  which suggests
grain traders may finally be focusing more on supply and demand fundamentals in
the grain markets than on the outside markets.

  The main fundamental focus in the corn market at present is weather in the
Corn Belt, which is still bearish. It appears a near-term market top is in
place, unless a serious weather scare occurs in the next few weeks to  ignite a
fresh bull market run in corn. The bulls' next upside price objective is to
push and close prices above solid technical resistance at  $4.30 a bushel. The
next downside price objective for the bears is to push  and close prices below
strong technical support at $3.90 a bushel. First  resistance for December corn
is seen at Thursday's high of $4.08 1/2 and  then at $4.15. First support is
seen at this week's low of $4.00 and then at $3.95.

  $7.07 

 the contract high

  $4.19 3/4 --- 10-day moving average

  $4.41 3/4 --- 20-day moving average

  $4.41 1/4 --- 40-day moving average

  $3.04 

 the contract low


  DECEMBER CBOT WHEAT

  December Chicago wheat on Thursday closed lower, near mid-range and hit a
fresh seven-week low. The key "outside markets" were bullish for wheat  futures
today, as the U.S. stock indexes were higher, crude oil was higher  and the
U.S. dollar was weaker. However, wheat sold off anyway, which suggests grain
traders may finally be focusing more on supply and demand fundamentals in the
grain markets than on the outside markets.

  The main fundamental focus in the wheat market at present is generally good
harvesting weather in the U.S. Plains states and weak U.S. export demand.
Prices are still in a steep three-week-old downtrend on the daily bar chart.
Wheat bears have the solid near-term technical advantage. The next  downside
price objective for the bears is pushing and closing prices below solid
technical support at the April low of $5.63. Bulls' next upside price objective
is to push and close July futures prices above solid  technical resistance at
$6.30 a bushel. First resistance is seen at  Thursday's high of $5.94 1/2 and
then at $6.00. First support lies at  Thursday's low of $5.81 and then at
$5.75.

  $11.50 1/2 --- the contract high

  $6.12 

 10-day moving average

  $6.45 

 20-day moving average

  $6.40 

 40-day moving average

  $4.91 

 the contract low


  DECEMBER KCBT WHEAT

  December KCBT wheat on Thursday hit a fresh seven-week low and closed lower
and near mid-range. Bears have the solid near-term technical  advantage. Prices
are in a steep four-week-old downtrend on the daily bar chart. The bulls' next
upside price objective is pushing prices above solid technical resistance at
$6.50. The bears' next downside objective is  pushing and closing prices below
psychological support at $6.00. First  resistance is seen at Thursday's high of
$6.23 1/2 and then at this week's  high of $6.35. First support is seen at
Thursday's low of $6.14 and then at $6.00.

  $11.35 

 the contract high

  $6.41 

 10-day moving average

  $6.72 3/4
 20-day moving average

  $6.66 1/2 --- 40-day moving average

   $4.60 

 the contract low