July corn was trading 3 cents higher late in the overnight session. Outside market forces looked mixed with some support from higher equity markets, but financial markets were mostly quiet. There were no deliveries this morning and none so far this month. The USDA report this morning will set the stage for the summer, with a focus on just how tight the 2011/12 ending stocks may be and just how plentiful the 2012/13 ending stocks could be if crop weather remains favorable and yields come in well above trend. Traders see US ending stocks for the 2011/12 season near 750 million bushels as compared with 801 million posted in the April update. For the 2012/13 season, traders see ending stocks near 1.71 billion bushels but with a range of 1.2 billion to well above 2 billion. World ending stocks for the 2011/12 season are expected to drop to near 122 million tonnes from 122.71 million last month. World stocks for the new crop season are expected to recover to around 137 million tonnes. US cash traders indicate that China has bought 8 cargoes or about 500,000 tonnes of US corn in the past week, but these rumors could not slow the aggressive selling from fund traders yesterday. Traders await confirmation on the daily wires. A South Korea feed mill bought 70,000 tonnes of corn overnight, and a different group is seeking 55,000 tonnes. Taiwan is tendering to buy 23,000 tonnes of US corn and 12,000 tonnes of US soybeans. July corn saw another round of aggressive selling late in the session yesterday to close sharply lower to its lowest close since April 25th. Continued demand fears coming out of Europe plus a bearish weather forecast for the Midwest helped spark the aggressive sell-off ahead of the key USDA Supply/Demand updates. December corn closed sharply lower and matched the lows from Monday and Friday. Ethanol production for the week totaled 6.279 million barrels, which was the highest weekly total since March 2nd. With a drop in stocks, implied demand was 7.127 million barrels, which would be the highest since December 9th. For the weekly export sales, traders see corn sales near 1.2 million tonnes, compared with 3.472 million last week.