July corn was trading 5 3/4 cents 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 energy markets. Part of the late break yesterday was concern that another mad cow episode in the US would lower feed demand. However, there was only one cow, it did not enter the food chain and feed consumption is not suspected as a reason for the isolated incident. The market has found solid support this week from the run higher in soybeans and from some confirmation of China buying. The USDA seems to be in a position to need to raise old crop exports by near 50-150 million bushels and then lower ending stocks. Cash basis levels remain very strong and this has left the trade seeing no deliveries on first notice day. Weather models do not seem as cold for early next week and this may have added to the negative tone. However, a colder and wetter pattern seems to be in the forecast for the next few weeks and this could slow plantings and emergence and this would leave less early corn production for use in August and early September. May corn moved from sharply higher to close moderately lower on the session yesterday. The market saw confirmation of China demand from the USDA sales news and the market surged higher early but buy the rumor, sell the fact selling helped to spark a sell-off from the highs. December corn closed 4 cents lower after trading as much as 5 1/2 higher. Private exporters reported a sale of 480,000 tonnes of US corn to unknown destination for the 2011/12 season. Traders believe this sale is to China. September corn gained 4 3/4 cents on the December corn as traders see less chances of early harvested corn due to the slower plantings pace and a cool outlook. Taiwan bought 60,000 tonnes of corn from Brazil.
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