MAY CBOT CORN, combined pit and electronic trading

May CBOT corn futures closed were moderately higher Friday, bolstered by speculation that the continued cold temperatures in parts of the Farm Belt could delay spring planting. The market closed higher on the weekly May corn chart, finishing in the upper third of the week's range, which is a positive signal.

On the daily chart, Friday's action formed a bullish outside day, which is a positive formation and gives the bulls the edge. The market is still "testing" resistance around $5.02 1/2, the March 7 high. Overall, the near and medium term trend patterns are bullish, but that is the key ceiling the bulls need to conquer to open the door to a fresh buying wave. Last week's action marked $5.12 1/2 as major nearby resistance, just shy of $5.13, the Sept. 3, 2013 spike high and daily resistance point.

Daily momentum studies are a concern for the bulls. Slow stochastics are overbought and pointing down. The 9-day relative strength index has been choppy and isn't revealing a strongly trending market. The 9-day RSI stood at 63% Friday.

Short-term support lies at $4.90 1/2. Declines under that level early in the week would be a weak signal and would open the door for a push back toward the bottom of the recent range, around $4.75.

$6.76 1/2 -- the contract high 
$4.95 -- 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 closed lower Friday and lower on the weekly chart. Rain in the forecast weighed on wheat prices amid speculation the precipitation could aid the U.S. winter wheat crop which has been challenged by dry conditions.

Technically, the market posted heavy losses last week. The weekly May wheat chart shows major resistance at $7.23 1/2, hit the week of March 21, which slightly exceeded the October 25 weekly high at $7.22 1/2. For now, that zone represents a near term top for the wheat market.

The near term trend is bearish. Support lies at $6.58 3/4, Friday's low, which coincided with a 38.2% Fibonacci retracement of the late January to late March rally move. Watch that zone to see if it can hold early in the week. Daily momentum studies are trending lower, but some indicators have reached oversold levels.

If that support at $6.58 3/4 gives way, a continuing corrective decline could test some or all of these retracement points in the days ahead at $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 1/4 -- the 10-day moving average 
$6.87 1/4 -- the 20-day moving average 
$6.49 -- the 40-day moving average 
$5.53 1/2 -- the contract low

MAY KC WHEAT, combined pit and electronic trading

May Kansas wheat closed lower Friday and lower on the weekly chart. Friday's sell-off stalled at 38.2% of the major rally move seen from late January into the late March high. That retracement support comes in around $7.24 1/4. That could act as a point for the market to stabilize. If it gives way, a 50% retracement is seen at $7.01. Minor resistance lies at $7.56 3/4 and $7.68 1/2. Major resistance remains at $7.99.

$9.40 -- the contract high 
$7.63 3/4 -- the 10-day moving average 
$7.58 -- the 20-day moving average 
$7.19 -- the 40-day moving average 
$6.05 -- the contract low