PRECIOUS METALS

August gold was higher overnight and is trading above the previous reaction
high crossing at 950.00 thereby renewing the rally off June's low.
Stochastics and the RSI are diverging but have turned bullish again
signaling that additional short-term gains are possible. If August extends
the rally off June's low, April's high crossing at 959.50 is the next upside
target. Closes below the 20-day moving average crossing at 917.20 would
confirm that a short-term top has been posted. First resistance is the
overnight high crossing at 953.20. Second resistance is April's high
crossing at 959.50. First support is the 10-day moving average crossing at
936.30. Second support is the 20-day moving average crossing at 917.20.

GRAINS

December corn was higher overnight due to short covering as it consolidates
some of this week's decline. Stochastics and the RSI are oversold but remain
bearish signaling that sideways to lower prices are possible near-term. If
December extends this week's decline, the 25% retracement level of the
August 2007-July 2008 rally crossing at 6.93 is the next downside target.
Closes above the 20-day moving average crossing at 7.55 1/2 would confirm
that a short-term low has been posted. First resistance is Tuesday's gap
crossing at 7.47. Second resistance is the 20-day moving average crossing at
7.55 1/2. First support is Thursday's low crossing at 7.01. Second support
is the 25% retracement level crossing at 6.93. This morning's supply-demand
report and the extended weather forecast for the Midwest hold the keys to
near-term direction in the market.

December wheat was higher overnight due to short covering as it consolidated
some of this week's decline. The low-range close sets the stage for a steady
to lower opening when the day session opens later this morning. Stochastics
and the RSI are oversold but remain neutral to bearish signaling that
sideways to lower prices are possible near-term. If December extends this
week's decline, the reaction low crossing at 8.27 1/2 is the next downside
target. Closes above the 20-day moving average crossing at 9.02 3/4 are
needed to confirm that a short-term low has been posted.

SOYBEAN COMPLEX

November soybeans were higher overnight as it extends this week's short
covering rally above the 10-day moving average crossing at 15.83 3/4.
Stochastics and the RSI are turning neutral to bullish signaling that
sideways to higher prices are possible near-term. If November extends this
week's short covering rally, the contract high crossing at 16.36 3/4 is the
next upside target. Closes below Tuesday's low crossing at 14.81 would
confirm that a short-term top has been posted. This morning's monthly
supply-demand report along with the extended weather forecast for the
Midwest hold the keys to near-term direction in the market.

December soybean meal was higher overnight as it extends this week's rally
and is poised to test the contract high crossing at 428.30. The mid-range
close set the stage for a steady opening when the day session begins later
this morning. Stochastics and the RSI are turning bullish signaling that
sideways to higher prices are possible near-term. If December renews this
year's rally, monthly resistance crossing at 432.00 is the next upside
target. Closes below Tuesday's low crossing at 385.60 would confirm that a
short-term top has been posted while opening the door for a possible test of
the reaction low crossing at 380.50 later this summer.

December soybean oil was sharply higher overnight due to short covering as
it consolidates some of this week's decline but remains below the 10-day
moving average crossing at 67.18. Stochastics and the RSI are turning
neutral signaling that sideways to higher prices are possible near-term. If
December renews last week's rally, the previous reaction high crossing at
70.31 is the next upside target. If December renews this week's decline, the
reaction low crossing at 63.45 is the next downside target. Closes below the
reaction low crossing at 63.45 would confirm that a short-term top.