July corn was trading 7 1/2 cents higher into 7:30 AM central time. Outside market forces look slightly positive today with a weaker US dollar and some strength in other commodity markets. With high open interest for July corn and weak export demand due to cheaper Brazil corn prices, the market saw aggressive long liquidation selling yesterday. With the sluggish demand tone, it may take a further weather threat to provide support. Dryness plus heat plus wind are all supportive factors this week which might cause significant deterioration of corn crop conditions. However, traders see relief for the northern Corn Belt for early next week and some relief for the entire Corn Belt for late next week. The outlook beyond late next week will likely set the tone for Monday night trade. Fund selling in old crop was active yesterday with slow export sales, news that Egypt bought Brazil corn and talk of a 10 cent dip in gulf corn basis all helping to spark selling. The second crop Brazil corn harvest is just getting underway with talk of high yields. There has been talk in cash circles that Brazil corn even pencils in for delivery to the East Coast of the US. Most of the Midwest is expected to receive some rains next week and there is talk that the late week system could be a slower moving weather system (drop more rain) as tropical storms near Florida help to slow the west-east movement across the Midwest. Funds were noted sellers of near 17,000 contracts. Israel bought 25,000 tonnes of Brazil corn at their tender For South America or US corn. Weekly export sales came in at just 156,100 metric tonnes for the current marketing year and 325,900 for the next marketing year for a total of 482,000. Most traders were looking for sales above 1 million tonnes. Ethanol demand looks strong but traders see usage near the blend wall so expanding E15 will be important to expect future growth. The Buenos Aires Grains Exchange cut its estimate for production to just 19.3 million tonnes from 19.8 as their previous estimate and from 21.5 million tonnes as the USDA forecast.