By Jim Wyckoff

  Of DOW JONES NEWSWIRES

DECEMBER CORN


  December corn closed firmer Wednesday and nearer the session high, and scored
a bullish "outside day" up on the daily bar chart. Short covering in a bear
market was featured. The key "outside markets" were bullish for corn, as crude
oil and U.S. stock index prices were higher, while the U.S. dollar was weaker.

  Importantly, the corn futures market rallied following a bearish USDA crop
production report. This suggests all the bearish fundamental news has already
been factored into the corn market and that the downside in prices is limited
at present price levels.

  Good follow-through buying strength on Thursday would be a technical clue
that a market low is in place. But right now the bears do still have the solid
near-term technical advantage.

  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 Wednesday's high of $3.39 and
then at $3.45. First support is seen at $3.30 and then at $3.25.

$7.07 
--- the contract high
$3.44 3/4 --- 10-day moving average
$3.36 3/4 --- 20-day moving average
$3.56 1/4 --- 40-day moving average
$3.14 3/4 --- the contract low

DECEMBER CBOT WHEAT


  December Chicago wheat closed firmer Wednesday and nearer the session high on
tepid short covering in a bear market after scoring a fresh two year-plus low
early. The key "outside markets" were bullish for wheat, as crude oil and U.S.
stock index prices were higher, while the U.S. dollar was weaker.

  Wednesday morning's USDA supply/demand and crop production report was deemed
neutral for wheat. Wheat bears still have the solid overall near-term technical
advantage.

  Prices are in a 10-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
$5.60 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 Wednesday's low of $5.03 1/2 and
then at $5.00.

$11.50 1/2 --- the contract high
$5.39 3/4 
 10-day moving average
$5.47 

 20-day moving average
$5.60 3/4 
 40-day moving average
$4.91 

 the contract low

DECEMBER KCBT WHEAT


  December KCBT wheat closed firmer Wednesday and near the session high after
hitting a fresh contract low early. Tepid short covering in a bear market was
featured.

  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 $5.44 and then at $5.50. First support is seen at
Wednesday's contract low of $5.25 and then at $5.20.

$11.35 
-- the contract high
$5.60 3/4 --- 10-day moving average
$5.67 3/4 --- 20-day moving average
$5.83 3/4 --- 40-day moving average
$5.33 1/2 --- the contract low