July corn was trading 1 cent higher late in the overnight session. China futures were down slightly. Outside market forces positive today with a weak US dollar and strength in equity and metal markets overnight. The strong cash market and continued rumors of China booking US corn have helped to provide underlying support but while old crop corn is bouncing off of the recent lows, the upside appears limited. December corn may be seeing some short-covering after specs may have been caught short and the market traded to an 8-session peak overnight. Decatur Illinois bids for April/May delivery jumped to 40 cents over. The weekly Corn Planting report showed that 28% of the crop is planted compared to 17% last week and 8% last year. The 10 year average for this time of year is 18%. The highest percent complete was 37% in 2010. The cooler weather this week and slower than expected plantings takes away some of the bearishness of the early plantings. Heavy rains last week limited planting in Iowa at only 9% complete as compared with 17% as the 10-year average. Taiwan bought 60,000 tonnes of corn from Brazil in their optional origin tender for 40,000-60,000 tonnes for June-July shipment. Taiwan is also tendering for a combo load of 23,000 tonnes of US corn and 12,000 tonnes of soybeans. May corn closed higher on the session yesterday but still down near the lower end of a 6 1/2 month trading range. The weekly COT report showed an active long liquidation selling trend from speculators and traders viewed the market as oversold. Continued talk that China is in the process of booking corn from the US and others plus a lack of new selling interest even with a bearish influence from outside markets and a real risk off mentality from fund traders yesterday helped to support solid gains. News that exporters reported a sale of 120,000 tonnes of US corn for 2012/13 delivery helped to provide some support but traders are hoping to see confirmation of much more active buying from China. Traders believe China has bought about 650,000 tonnes of old crop corn in the past week (26 million bushels) which could help tighten the ending stocks outlook. Traders also wait for any confirmation of new crop purchases of 2.0-2.5 million tonnes or about 80 million bushels. Ideas that the sell-off on Friday was overdone plus more and more talk that there is substance to the China rumors of restocking reserves with new crop US corn helped to support. Weekly export inspections came in at 29.4 million bushels which was well below trade expectations.