December corn was up 4 cents late in the overnight trade. Outside markets are positive this morning with a weaker US dollar and some strength in equities and energy markets. Deteriorating crop conditions and concerns for a weaker US dollar ahead helped to support the bounce overnight. More and more traders are lowering their yield forecasts after poor weather and stressful conditions for a large part of the corn crop for July. The weekly Corn Conditions report showed 62% of the crop was rated good/excellent compared to 66% last week and 72% last year. The 10 year average for this time of year is 63%. Poor to very poor ratings jumped to 14% from 11% last week and 9% last year. Indiana good to excellent ratings slipped 7% to just 46% and both Illinois and Nebraska slipped 2%. In Illinois, 38% of the topsoil was rated short to very short which may have added to the stress into pollination. December corn closed moderately lower on the session yesterday but trimmed the losses with a significant rally off of the morning lows. Funds were noted as aggressive selling early in the day. Better than expected rain over the weekend and cooler weather for the northern Midwest helped to pressure the market. Traders see a warm and mostly dry 6-10 day outlook for the southern half of the Corn Belt as a potential positive force but areas in the northern half of the Corn Belt are expected to receive further rain chances early and late this week. In addition, the extended models into early August show more normal rain and temperature readings. The weekly export inspections report showed corn exports at 35.3 million bushels which was up from trade expectations. Exports need to average 47.3 million bushels per week to reach the USDA projection for the year. Traders noted weaker basis levels for corn at the gulf due to sluggish demand.