MAY CBOT CORN, combined pit and electronic trading

May CBOT corn futures posted modest gains at the final bell on Thursday, as the contract consolidated with an "inside day" session. The market is testing a chart zone at $5.02 1/2, the March 7 high. If gains can be sustained above that area it would be a positive signal, if the market retreats back down under that zone it would be a weak signal.

The near and medium term trends are bullish. A major upside target lies at $5.13, the Sept. 3, 2013 spike high and daily resistance point, with additional bullish objectives beyond there.

But, the April 2 retreat was a weak signal and revealed hesitation on the part of the bulls. The burden is on the bulls to sustain the recent upside breakout.

On the downside, if the market holds under $5.00 the bears will likely press for a push back toward the bottom of the recent range, around $4.75.

$6.76 1/2 -- the contract high

$4.94 3/4 - -the 10-day moving average

$4.89 - the 20-day moving average

$4.75 1/2 -- the 40-day moving average

$4.14 1/2 -- the contract low

MAY CBOT WHEAT, combined pit and electronic trading

May CBOT wheat rebounded to a higher close Thursday. The market has slid sharply in recent sessions and a little snap-back correction is not a surprise. Overall, the near term trend is bearish for May wheat. A minor top and major resistance has formed on the daily chart at the $7.23 1/2 ceiling hit on March 20.

The market pierced support at $6.69 3/4, the March 14 daily low, earlier this week. But, for now wheat may attempt to stabilize around that zone. If declines emerge under $6.65 it would be a negative signal and the market would be vulnerable to another selling wave.

Looking at the downside, a Fibonacci retracement can be drawn on the daily chart off the late January low to the late March high. A continuing corrective decline could test some or all of these retracement points in the days ahead at $6.58 1/2 (38.2%), $6.38 1/2 (50%) and $6.18 1/2 (6.18%). These are potential support floors and bearish targets if further losses unfold.

For now the intermediate term trend off the late January low remains bullish and this sell-off can be considered corrective.

Minor resistances are seen at $6.88 and $7.02.

$8.98 --the contract high

$6.92 1/2 -- the 10-day moving average

$6.87 1/2 -- the 20-day moving average

$6.49 1/4 -- the 40-day moving average

$5.53 1/2 -- the contract low

MAY KC WHEAT, combined pit and electronic trading

May Kansas wheat also recovered to a higher close Thursday. Nonetheless, the market remains vulnerable to additional losses near term. The 40-day moving average remains below the market at $7.16 1/2 and could act as a target and support near term. Minor resistance lies at $7.68 1/2. Major resistance remains at $7.99.

$9.40 - - the contract high

$7.67 1/2 -- the 10-day moving average

$7.58 1/2 -- the 20-day moving average

$7.16 1/2 -- the 40-day moving average

$6.05 -- the contract low