By Jim Wyckoff

  DOW JONES NEWSWIRES


  DECEMBER CORN


  December corn prices Monday closed sharply higher, nearer the session high
and at one point did trade limit up at 30 cents higher. The market was
supported by fresh USDA export demand news today, on a weaker U.S. dollar and
on short covering. My bias is still that a near-term low is in place. However,
a seven-week-old downtrend line remains in place on the daily bar chart and
corn bulls would likely struggle if the $6.00 psychological resistance level is
breached on the upside in the near term. The bulls' next upside price objective
is to push and close prices above solid technical resistance at Monday's and
last week's high of $5.79. The next downside price objective for the bears is
to push and close prices below solid technical support at $5.47 1/4. First
resistance for December corn is seen at Monday's high of $5.79 and then at
$5.90. First support is seen at the July low of $5.62 3/4 and then $5.50.

7.99 1/4 --- the contract high
5.43 3/4 --- 10-day moving average
5.69 3/4 --- 20-day moving average
6.45 1/2 --- 40-day moving average
2.59 

 the contract low


  DECEMBER CBOT WHEAT


  December Chicago wheat prices Monday closed solidly higher and nearer the
session high on speculative buying and more short covering. Trading has turned
very choppy. The bulls have the near-term technical advantage in wheat.
However, my bias is that the upside is limited as levels approach major
psychological resistance at $9.00 a bushel. The next downside price objective
for the bears is pushing and closing prices below solid technical support at
$8.50. Bulls' next upside price objective is to push and close December futures
prices above solid resistance at last week's high of $9.12 3/4 a bushel. First
resistance is seen at $9.00 and then at $9.12 3/4. First support lies at $8.75
and then at $8.60.

12.84 1/4 --- the contract high
8.36 1/2 --- 10-day moving average
8.25 
--- 20-day moving average
8.50 3/4 --- 40-day moving average
4.00 1/2 --- the contract low


  DECEMBER KCBT WHEAT


  December Kansas City wheat prices Monday closed solidly higher and near
mid-range on short covering and speculative buying. Bulls have the near-term
technical advantage. The bulls' next upside price objective is pushing and
closing prices above solid technical resistance at last week's high of $9.42 a
bushel. The bears' next downside objective is pushing and closing prices below
solid technical support at $8.80. First resistance is seen at today's high of
$9.30 1/2 and then at $9.42. First support is seen at $9.00 and then at
Monday's low of $8.95.

12.99 

 the contract high
8.67 1/2 --- 10-day moving average
8.55 1/2 --- 20-day moving average
8.80 1/2 --- 40-day moving average
4.88 

 the contract low