Technical analysis: US corn, wheat futures

March corn futures closed weaker, near the session high and saw more mild profit taking and position evening Tuesday. Traders are awaiting Wednesday morning's U.S. Department of Agriculture supply and demand report, which is expected to be bullish.

A seven-month-old uptrend on the daily bar chart is still in place for corn and the bulls still have the strong overall near-term technical advantage.

The corn bulls' next upside price breakout objective is to push and close prices above major psychological resistance at $7.00 a bushel. The next downside price breakout objective for the bears is pushing and closing prices below solid technical support at $6.50.

First resistance for March corn is seen at Tuesday's high of $6.75 and then at the contract high of $6.82 1/2. First support is seen at $6.69 1/2 and then at Tuesday's low of $6.66 1/4.

$6.82 1/2 ---- the contract high 
$6.63 3/4 ---- 10-day moving average 
$6.56 -------- 20-day moving average 
$6.31 3/4 ---- 40-day moving average 
$3.56 3/4 ---- the contract low 
 
   MARCH CBOT WHEAT

March Chicago SRW wheat closed higher, nearer the session high and set a fresh contract and 2.5-year high Tuesday. Traders are awaiting Wednesday morning's USDA supply and demand report, which is expected to be bullish.

The wheat bulls have the strong overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart.

The bulls' next upside price breakout objective is to push and close Chicago SRW prices above major psychological resistance at $9.00 a bushel. The next downside price breakout objective for the wheat futures bears is pushing and closing prices below solid technical support at $8.40.

First resistance is seen at Tuesday's contract high of $8.80 3/4 and then at $8.90. First support lies at $8.63 1/2 and then at $8.50.

$8.80 3/4 --- the contract high 
$8.51 1/2 --- 10-day moving average 
$8.25 1/2 --- 20-day moving average 
$8.02 1/4 --- 40-day moving average 
$5.04 ------- the contract low 
 
   MARCH KCBT WHEAT

March K.C. HRW wheat closed higher Tuesday, nearer the session high and hit another fresh contract and 2.5-year high today.

HRW bulls have the strong overall near-term technical advantage. There are still no early clues to suggest a market top is close at hand.

The bulls' next upside price breakout objective is pushing and closing prices above major psychological resistance at $10.00. The bears' next downside breakout objective is pushing and closing prices below solid technical support at $9.35 3/4.

First resistance is seen at Tuesday's contract high of $9.77 and then at $9.90. First support is seen at $9.60 and then at $9.50.

$9.77 ------- the contract high 
$9.40 1/2 --- 10-day moving average 
$9.09 1/2 --- 20-day moving average 
$8.74 3/4 --- 40-day moving average 
$5.05 ------- the contract low

(Source: http://www.agriculture.com/markets/analysis/corn/technical-alysis-us-cn-wheat-futures_9-ar14553)