TECHNICALS REVEALING......... Monday began with our weekly export inspection report, telling us how much of each grain was inspected by the USDA for near term shipment. Wheat inspections were 23m.b. unchanged from the week prior and over the four-week average of 18. We need over 30 weekly to be bullish but the better numbers certainly feed the thinking demand is picking up here in the US now that Australia's crop is in poor shape and slow to come to market with shipping rails underwater. Corn inspections were 25.8 m.b. versus 23.2 the week prior and four-week average of 22. We need over 30m.b. weekly to be friendly for pricing and over 40 to be bullish. So this number at best says high prices of corn are not slowing demand but the number is not so high enough to not increase demand . It's a draw on the demand side and leaves corn strength to continue to come from supply-side potential acreage issues. A private crop forecasters on Friday released numbers suggesting corn acres to be planted this year at 90.9 million bushels up 3% from the year-earlier and by most traders thinking not enough to increase ending stocks out of dangerously low areas. Soybean inspections were 42m.b. versus 46 the week prior, 51 a year ago and over our four-week average of 31. In the big picture anything over 40 is bullish for demand. China was in for 29 of the total , a weekly increase for the third consecutive week. Last week China set in motion another record export year for US beans by signing purchasing agreements that end up to record tonnage. The market shrugged it off as it was no surprise. Beans on Monday decided to trade lower as we told you on Friday's report it would with rain in the forecast for Wednesday through Friday in Argentina. WX RIS K.com the weather site sees hot and dry through today Tuesday, but rain enters Wednesday into Friday with .25 and 1.50 inches of rain with 60% coverage and possibly more next week. It's not a lot but traders remember the weekend before this past one when rain totals were double what was called for. The market always prices in the weather for the week on Monday's. A private crop forecasters Friday suggested farmers will plant 76.6 million acres of beans this year, slightly less than last year. Well, needless to say, with China planning to buy massive bean tonnage we need to plant more acres not less, especially with demand cutting our ending stocks for 2011 monthly. Both corn and bean acreage estimates suggest a price battle between them will continue into planting of course price corrections between rounds in this fight. The rallies and breaks are coming quicker now as large trading funds flex their muscle and shuffle their deck. March corn rallied to new highs January 3 then broke $.35. Then another new high rally into January 18, then a $.40 break. Then another rally high into January 21 and a $.30 correction into today's low. Beans too have seen a measurable correction off its January 3, 18 and 21st highs. But with beans, the last two highs are not new ones but building a 14.30 high top hit six of the last nine days. This all set up talk today for the first time that seasonal funds selling may be near. As I noted prior, the last two years saw big price corrections late January into mid-February. The recent December through January rally had the trade talking of a January to March and May rally similar to 2008 as underlying fundamentals are the same. Record world demand and dangerously low ending stocks with needs of more acres to be planted. One of these two scenarios will surface one way or the other before mid-February. Here's how technicals read now. We gave 6.38 as first support for this week and today's low was 6.392. The rising support line crosses Wednesday at 6.40. A close under and 6.28 is the next support. 6.84 remains major upside resistance. For a chart purist, a close under 628 sets up consolidation between 6.00 and 6.25 to develop the right shoulder of a classic head and shoulders formation. March beans bounced off first support Monday at one 14.00 then went to the second support we gave of 13.70 today. Resistance is 14.30. A close under 13.70 then 13.50 is next. 13.15 is the bottom of the right shoulder of a weak looking head and shoulders formation. A close under that and 12.95 is next stop. March wheat has minor support at 8.25 then 8.10. Resistance remains 8.65.