July Chicago Board of Trade corn rallied on Monday pulled up by wheat and the prospects of reduced acres due to wet conditions preventing planting. Strength in the dollar and a corresponding fall in wheat prices then pulled corn down before another rally on Thursday. The short-term trend for corn looks neutral as it remains between initial resistance at $3.70 and support at $3.57. The long term trend is bearish with long term support at $3.55. Any loss below this level will open up further declines.
July Kansas City wheat has been choppy this week as funds continue to cover record short positions. Prices have been testing the 100-day moving average ($5.52) resistance all week while funds continue to cover shorts and the rest of the market plays the weather game. Price closed above the 100-day moving average on Thursday but could not close above resistance at the May 18 high of $5.64. The short term trend for wheat is still slightly bullish but the overall trend remains bearish. Resistance is still at $5.61 with support at the 100-day moving average of $5.52. Medium term support lies at $5.28 and long term support at $4.85.