July corn was trading 3 cents lower late in the overnight session. Outside market forces are clearly bearish with a sharp drop in metal and energy markets, a higher US dollar and a sharp break in China stock markets. The sharp set-back in the China stock market has traders nervous over the longer-term feedgrain demand from this region. The lack of a significant reason to suspect any weather problems with the US crop has added to the negative tone. The 11-15 day models show heat in the southern and eastern US and this region looks dry for the next few weeks so we can not rule out some weather concerns emerging soon. However, after a great start to the growing season and a lack of dryness for much of the Midwest, it may take time and a continued dry trend on the extended models to shift the psychology away from the bear camp. The China National Grains and Oils Information Centre believes that China corn planted area this year may increase by more than 2%. This could push production to a record high 197.5 million tonnes, up 3% from last year's record. July corn closed sharply higher on the session yesterday and near the highs of the day with funds noted as active buyers. A recovery bounce in soybeans and some strength in US equity markets helped to provide some support. The crop is 87% planted which was higher than expected with emergence at 56% as compared with 28% as the 5-year average. South Korea bought 56,000 tonnes of US corn yesterday and also bought 60,000 tonnes of optional origin corn overnight. Traders see the weather as short-term bearish force but with a dry two-week outlook for some Midwest locations, the bears are wanting to see some rain emerge in the extended forecast models soon.