DOW JONES NEWSWIRES


  DECEMBER CORN


  December corn prices rallied strongly Wednesday, rejecting a corrective push
to lower levels earlier this week. Price action has been extremely volatile in
recent sessions. However, Wednesday's wide range day to the upside signals the
bulls are back in control. On Tuesday, the market tested and held support from
the June 24 low. Wednesday's strong rally opens the door to a quick retest of
the contract high. From a seasonal perspective, corn bulls do still have the
near-term technical advantage heading into the period right after the Fourth of
July holiday. As seasoned grain traders are well aware, price action next week
could well be the most important of the summer for all of the grains. The
bulls' next upside price objective is to push and close prices above major
psychological resistance at $8.00. The next downside price objective for the
bears is to push and close prices below support at $7.35 3/4, the July 1 low
and a key pivot low on the daily chart. First resistance for December corn is
seen at Wednesday's high of $7.82 and then at $7.93. First support is seen at
$7.55 1/4 and then at $7.35 3/4.

7.99 1/4 --- the contract high
7.65 1/4 --- 10-day moving average
7.47 1/2 --- 20-day moving average
6.88       --- 40-day moving average
2.59 

 the contract low


  DECEMBER CBOT WHEAT


  December Chicago wheat prices edged higher for a second session in a row on
Wednesday as the market corrects the hefty price plunge from June 26-June 30.
While the short term technical tone has been mostly positive since the
beginning of June, the dominant longer-term trend is still bearish in the wake
of the mid March-late May price collapse. Major resistance near term lies at
the $9.94 3/4-$10.00 mark and the bulls would need to conquer that ceiling to
turn the intermediate term outlook positive and keep the recent uptrend alive.
Bulls' next upside price objective is to push and close December futures prices
above solid technical resistance at $9.94 3/4 a bushel. The next downside price
objective for the bears is pushing and closing prices below solid technical
support at $8.77 a bushel. First resistance is seen at $9.08 and then at $9.45.
First support lies at Wednesday's low of $8.80 and then at $8.50.

12.84 1/4 --- the contract high
9.16 3/4 

 10-day moving average
9.02 1/2--- 20-day moving average
8.56 3/4 --- 40-day moving average
4.00 1/2 --- the contract low


  DECEMBER KCBT WHEAT


  December Kansas City wheat prices closed higher Wednesday, but recent rallies
were lackluster and not well defended by the bulls. The market broke the minor
June uptrend amid the sell-off over the last week and the bulls' control of the
market is dubious. The bulls' next upside price objective is pushing and
closing prices above solid technical resistance at $9.66 a bushel, which would
fill on the upside Monday's downside price gap. The bears' next downside
objective is pushing and closing prices below solid technical support at $9.00.
First resistance is seen at Wednesday's high of $9.28 and then at $9.50. First
support is seen at this week's low of $9.13 and then at $9.00.

12.99 

 the contract high
9.48 3/4 --- 10-day moving average
9.33 3 /4 --- 20-day moving average
8.92 1/2 --- 40-day moving average
4.88 

 the contract low