July Chicago Board of Trade Corn is beginning to form a short-term bullish trend. Prices were weak on Thursday but were able to shrug it off to close higher to form a bullish outside day. Important short-term support is at Thursday’s low of $3.56 which corresponds with the 10-day moving average. If this level holds firm, the minor short-term uptrend will remain. If it does not, further support lies at $3.48. Resistance lies at $3.67.
July Kansas City Wheat had an expected fall on Wednesday after 3 days of fund short covering but was able to rise again and continue climbing with news of dry areas in wheat producing regions (see Tucker Talk). Thursday’s low at $5.24 is now strong short-term support ahead of lower, swing low support at $4.95. Resistance lies at $5.64 and was tested twice a couple weeks ago.