By Jim Wyckoff
   DOW JONES NEWSWIRES

  DECEMBER CORN

  December corn on Tuesday closed slightly higher and nearer the session low in
quiet, pre-report trading. Tepid short covering in a bear market was featured
ahead of Wednesday morning's key USDA crop production report. That report is
not expected to be bullish for corn. The key outside markets were mostly
bearish for corn Tuesday, as crude oil prices were weaker and the U.S. stock
indexes were weaker. Weather in the U.S. Corn Belt remains benign for corn.

  The corn bulls' next upside price objective is to push prices above solid
technical resistance at $3.50 a bushel. The next downside price objective for
the bears is to push and close prices below solid technical support at the
contract low of $3.14 3/4 a bushel.

  First resistance for December corn is seen at this week's high of $3.37 and
then at $3.40. First support is seen at $3.25 and then at this week's low of
$3.21 1/4.

$7.07 

 the contract high
$3.44 
--- 10-day moving average
$3.36 3/4 --- 20-day moving average
$3.58 1/4 --- 40-day moving average
$3.14 3/4 --- the contract low

   DECEMBER CBOT WHEAT


  December Chicago wheat on Tuesday closed lower, nearer the session low, and
scored a fresh two-plus year low. The key "outside markets were mostly bearish
for wheat again Tuesday, as crude oil prices were weaker and U.S. stock indexes
were weaker.

  Traders are awaiting Wednesday morning's USDA supply and demand and crop
production report, which is not expected to be bullish.

  Wheat bears still have the solid overall near-term technical  advantage.
Prices are in a nine-week-old downtrend on the daily bar chart.

  The next downside price objective for the bears is pushing and closing prices
below major psychological support at $5.00. Bulls' next upside price objective
is to push and close July futures prices above solid technical resistance at
$5.55 a bushel.

  First resistance is seen at this week's high of $5.26 3/4 and then at the
July low of $5.32 3/4. First support lies at  Tuesday's low of $5.10 3/4 and
then at $5.00.

$11.50 1/2 --- the contract high
$5.42 
--- 10-day moving average
$5.49 1/4 --- 20-day moving average
$5.63 1/4 --- 40-day moving average
$4.91 

 the contract low

   DECEMBER KCBT WHEAT


  December KCBT wheat on Tuesday closed lower, near the session low, and hit a
fresh contract low. Bears still have the solid near-term technical advantage.
Prices are in a nine-week-old downtrend on the daily bar chart.

  The bulls' next upside price objective is pushing prices above solid
technical resistance at $5.75. The bears' next downside objective is pushing
and closing prices below major psychological support at $5.00.

  First resistance is seen at Tuesday's high of $5.44 and then at $5.50. First
support is seen at Tuesday's contract low of $5.33 1/2 and then at $5.25.

$11.35 
-- the contract high
$5.63 3/4 --- 10-day moving average
$5.69 3/4 --- 20-day moving average
$5.86 1/2 --- 40-day moving average
$5.33 1/2 --- the contract low