December wheat closed up 13 3/4-cents at 7.33.

December wheat closed higher on Thursday and above the 20-day moving average crossing at 7.26 3/4 signaling that a short-term low has been posted. The USDA estimated this year's wheat crop at 2.077 billion bushels, which was down 8 million from the average pre-report trade guess and down 29 million from its July estimate. USDA cut its durum estimate by 7 million bushels and other spring wheat by 29 million. The USDA cut total wheat acreage by 1.2 million acres however; traders believe that additional cuts will be coming later this year. The mid-range close sets the stage for a steady opening when Friday's night session begins trading. Stochastics and the RSI are turning bullish signaling that sideways to lower prices are possible near-term. Closes above last Tuesday's high crossing at 7.64 1/2 are needed to renew the rally off July's low. If December resumes Monday's decline, the reaction low crossing at 6.51 is the next downside target. First resistance is last Tuesday's high crossing at 7.64 3/4. Second resistance is the 38% retracement level of the February-July decline crossing at 7.71 1/2. First support is Tuesday's low crossing at 6.81 3/4. Second support is the reaction low crossing at 6.51.