December corn was up 8 1/4 cents late in the overnight session. Outside market forces look positive, with strong global equity markets and a weaker US dollar seen as supportive. Weekend rain amounts were disappointing for producers in eastern Iowa, west-central Illinois and parts of Indiana, and this helped support renewed buying support in corn. Demand fears are still prevalent, as traders see Black Sea wheat, Ukrainian corn, Brazilian corn and even US wheat in some areas priced cheaper than US corn. However, traders also see a potential loss of 500,000-1.0 million in harvested corn acreage in the US and the potential for even further revisions lower in yield ahead as positive factors for prices. The Commitments of Traders Futures reports as of August 16th showed non-commercial traders were net long 311,254 contracts, an increase of 16,587 contracts in just one week. The buying trend is seen as a short-term positive force. Commodity index traders held a net long position of 346,522 contracts, down 7,665. December corn closed 12 1/4 cents higher on the session Friday and closed up 10 3/4 cents for the week. The market saw pressure early due to collapsing world stock markets, but a recovery in the US stock market helped to support the market with fund traders noted buyers. Corn continues to find support from talk that the yield outlook from producers looking at samples from fields in Iowa and Illinois look smaller than the yield outlook from the USDA in the last production report. Keep in mind, the August crop report showed Illinois yield at 170 bushels per acre, up 13 from last year, and Iowa yield at 177, up 12 from last year. Private exporters reported to the USDA that Japan bought 140,000 tonnes of corn from the US for the 2012/13 marketing year. This news was offset by a report that Taiwan bought 62,000 tonnes of Brazilian corn. The upside may have been limited by talk that demand is sluggish for US exporters. Traders see weekly crop conditions down 1-2% in this afternoon's weekly crop update. The Cattle on Feed report on Friday showed placements up 22% from last year, which leaves August 1st feedlot supply up 7.6% from last year. Traders will monitor a large annual crop tour this week for clues on yield. China imported 172,624 tonnes of corn in July from 11,234 tonnes in June.
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