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[dasein]

getting close.....via email: The corn market was a leader to the downside all day. The July contract returned to its overnight lows into the close with the December contract making a minor new 9-month low into the close. Traders said that the late selling came on profit taking as well as light hedging on an otherwise quiet and featureless day. Weather forecasts are still considered favorable with substantial rains moving into the central Midwest tomorrow before hotter temperatures arrive this weekend. Some forecasts are calling for a significant mass of cooler and dry air to move into the region near the middle of next week. This week's export inspections for corn were 31.742 million bushels, down from 48.967 last week. Cumulative inspections to-date stand at 70.0% of the USDA's export projection for 2009/10 versus a 5-year average of 72.5%. Inspections need to average 45.465 million bushels each week in order to reach the USDA's projection. The USDA will also release its Crop Progress reports this afternoon and its supply and demand reports on Thursday. July corn was lower, finding another new low for the move. The low-range close below the pivot point suggests a bearish bias for Tuesday. Follow-through selling would test support at last year's low of 333.75. There is the potential for a gap-lower open. That would look like an exhaustion gap as directionals are oversold. Their trend is down to favor the sell side. The downside breakout staged in June of the previous consolidation zone suggests a downside objective of about 320. A turnaround Tuesday trade could be sponsored by a short covering bounce. A 38% retracement would be back up to resistance at previous support in the 350 area. July wheat was lower, making for another new contract low of 431. The low-range close below the pivot point suggests a bearish bias. There is the potential for a gap-lower open, which would look like an exhaustion gap as directionals are oversold. However, directionals are still trending down to favor the sell side. The move lower in May violated an uptrend line drawn off the April lows, looking like a downside breakout that gives a downside objective of 435, which has been achieved. today. A turnaround-Tuesday trade could be sponsored by a short covering bounce. A 38% retracement would be back up to the 450 area.