DOW JONES NEWSWIRES


DECEMBER CORN


  December corn bulls took a step back on Tuesday, as the contract closed at
slightly weaker levels.

  However, the modest retreat and inside day action was not a surprise in the
wake of Monday's sharp upmove.

  The overall improvement to the technical picture was not hurt by Tuesday's
consolidative action. In recent sessions, the Dec corn contract blasted above
the top of its July trading range, turning the near-term technical trend up.

  The corn bulls' next upside price objective is to push prices above the
40-day moving average at $3.72 3/4. The next downside price objective for the
bears is to push and close prices below $3.53 1/4, the July 6 high and the top
of the trading range that confined price action for most of the month of July.

  First resistance for December corn is seen at Monday's high of $3.76 and then
at $3.90. First support is seen at $3.60 1/2 and then $3.39.

$7.07 
--- the contract high
$3.40 1/4 --- 10-day moving average
$3.37 1/4 --- 20-day moving average
$3.72  3/4 -- 40-day moving average
$3.14 3/4 --- the contract low


DECEMBER CBOT WHEAT


  December Chicago wheat also saw a minor setback on Tuesday, as the bulls gave
up a portion of Monday's gains. Wheat saw a slightly weaker close, tracking
profit-taking in the corn market.

  The next key upside objective for wheat bulls is to close above the July 20
daily swing high at $5.79 1/2. The market edged above that level intraday
Monday, but did not settle above it. A solid close above the July 20 high would
confirm an intermediate-term bottom on the daily wheat chart.

  First resistance is seen at $5.77 and then $5.84 1/2. First support lies at
$5.67 and then at $5.56, Friday's high and the gap bottom.

$11.50 1/2 --- the contract high
$5.52 3/4  --- 10-day moving average
$5.55 1/2 
 20-day moving average
$5.78 1/4 
 40-day moving average
$4.91 

 the contract low


DECEMBER KCBT WHEAT


  December KCBT wheat followed the Chicago market to a slightly lower
settlement Tuesday. The contract tested, but held initial support at Monday's
low.

  The bulls' next upside price objective is pushing prices above the June 29
low and gap top at $6.08. The bears' next downside objective is pushing and
closing prices below $5.76, the July 31 high and a gap bottom.

  First resistance is seen at $5.95 1/2 and then at $6.03. First support is
seen at $5.85 and then at $5.76.

$11.35 
-- the contract high
$5.74 
--- 10-day moving average
$5.75 1/4 --- 20-day moving average
$6.01 3/4 --- 40-day moving average
$5.49 1/2 --- the contract low