July corn was trading 2 3/4 cents higher into 7:30 AM central time. Outside market forces look slightly weaker overnight with some further strength in the US dollar and weakness in the equity markets. China futures jumped 1.38% overnight. The market saw some initial weakness overnight with December down to as low as 520 after the USDA weekly crop updates but even with weakness in outside market forces this morning, the market managed to push higher. The weather looks dry and is showing some warming tendencies into next week but after a week or so of only scattered rains, the market may need to absorb a cooler and wetter weather trend into mid-June. If confirmed, this would be a big boost to conditions into pollination. However, another week of dry weather now is likely to cause crops to show some deterioration. The weekly Corn Conditions report showed that 72% of the crop was rated good/excellent compared to 72% last week and 67% last year. Traders suspected a slight decline this week. Nebraska slipped 4% and Iowa 2% but Indiana improved 3%. Fringe areas were hard hit with Missouri down 10% and Ohio down 5%. The 10 year average for this time of year is 68%. The market saw solid gains yesterday to close sharply higher for old and new crop corn. A turn down in the US dollar and some stability for US financial markets helped to provide support as traders viewed the late selling on Friday as overdone. Talk that the weekend rain event was disappointing and that a continued below normal rainfall outlook could leave some areas of the Midwest with some dryness stress into pollination and this helped to support. On the other hand, some traders see a cooler trend into Mid-June as a reason to suspect better yield. Rain looks fairly limited in the next 10 days and this was a different view than late Friday when traders were talking of better rains and improving crops into mid-June. Weekly export inspections come in at 27.1 million bushels which was right on trade expectations and compares with 36 million bushels necessary each week to reach the USDA projection for the season. Brazil pegged the corn crop at a record high 67.79 million tonnes, from a May estimate of 65.9 million.
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