December corn was down 1 1/4 cents late in the overnight trade. Outside markets look mixed with firm energy markets and a strong US dollar. More and more reports that average and nighttime temperatures in July were near record highs for many parts of the Midwest continue to provide underlying support. While the weather outlook is less threatening, traders see August weather as important to determine final yield. Many traders see yield near 155-156 bushels per acre due to severe heat in July but there is uncertainty for the August USDA report as it may be too early for the USDA to pick-up pollination issues. Heavy rains for Iowa and northern Illinois in the past few days are seen as bearish but the rains are not reaching the drier areas of the central and southern Corn Belt. However, forecasts for some rains in these dry areas over the next two weeks has helped to ease crop condition concerns and is seen as bearish. December corn closed slightly higher on the session yesterday finding support from higher wheat prices and continued concerns that last week's weather may have negatively impacted yield. The market saw the highest close since June 13th even with a weather forecast which suggests that 2/3rds of the Corn Belt will receive a good rain event in the next week. Rain over northern Illinois yesterday did not reach areas where this month's heat wave is likely to negatively impact yield. Ethanol production for the week ending July 22nd averaged 874,000 barrels per day. This is up 0.11% vs. last week and up 7.11% vs. last year. Total Ethanol production for the week was 6.118 million barrels. Corn used in last week's production is estimated at 93.1 million bushels. Corn use needs to average 113.7 million bushels per week to meet this crop year's USDA estimate of 5.05 billion bushels. Stocks were 18.8 million barrels. This is down -1.4% vs. last week and down 3.3% vs. last year. Traders will monitor weekly export sales news for release before the opening.