July corn was trading 2 3/4 cents lower late in the overnight session. China futures were down 0.5%. Outside market forces look negative again today with weakness in equities, metal and energy markets and a firm dollar. There were no deliveries this morning and none so far this month. So far, the corn market has been able to avoid much in the way of selling pressures from the events in Europe and weakness across global equity markets. A surge in basis levels and continued talk that China is buying US corn on the recent break has helped to support. Traders indicated that barges at the gulf for May shipment traded as high as 104 cents over July and set back to 97 cents over by late in the session. This may have been a factor to spark the set-back in May corn off of the early highs. There was also talk that Decatur Illinois traded at 70 cents over July. Corn managed to buck the trend of most other commodity markets yesterday to see periods of strong gains with July and December corn closing slightly higher on the day. A sharp break in soybeans and other financial sensitive commodity markets helped to pull the market off of the highs. A lack of confirmation from the USDA on new China demand, better than expected planting progress and weakness in gold, energy and equity markets were factors which did not seem to spark much selling. The weather outlook remains favorable for planting and crop development. May corn pushed sharply higher and to the highest level since September 27th before the set-back into the close. Ideas that the USDA will tighten ending stocks for the report tomorrow morning helped support old crop. For US ending stocks for the 2011/12 season, traders see stocks 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 near 1.2 billion to well above 2 billion bushels. World ending stocks for the 2011/12 season are expected to drop to near 122 million tonnes from 122.71 million last month. Stocks for the new crop season are expected to recovery to near 137 million tonnes.