December corn was up 7 1/2 cents late in the overnight session. Outside market forces look positive today as energy strength and US dollar weakness support a more positive tilt toward risk. There have still been no deliveries for September corn. Deteriorating crop conditions and ideas that next week's supply/demand report will show the need to ration demand helped support a strong uptrend in corn and higher trade overnight. The weekly Crop Progress report showed that 52% of the US corn crop was rated good/excellent as of Sunday, compared to 54% last week and 69% last year. Iowa slipped 4% to 55% good to excellent. The crop is 18% mature. Demand concerns persist, as high prices have caused slow exports and increased feeding of wheat. Ukraine may export nearly 12 million tonnes of corn this year, up from 5.1 million last year. December corn managed to see a strong recovery during the session yesterday, trading near the highs of the day into the close but still lower on the day. The market pushed sharply lower early, as speculative long liquidation selling was considered active. A sharp sell-off in the energy and equity markets and a surge higher in the US dollar helped to pressure. Ideas that Friday's rally may have been overdone helped to pressure as well, but the market remained inside of Friday's range. Weekly export inspections, released during the session yesterday, came in at 24.19 million bushels, which was well below trade expectations. The US dollar ran to its highest level since July 18th on continued debt concerns for Europe. South Korea bought 220,000 tonnes of US corn over the weekend. Low yield concerns have helped to provide underlying support. A prominent research firm, however, pegged corn yield at 151 bu/acre and production at 12.711 billion bushels. In the August USDA supply/demand report, production was pegged at 12.914 billion bushels and usage at 13.16 billion. The new estimates were higher than current expectations, and this added to the negative tone into the mid-session yesterday. A satellite imagery research firm pegged yield at just 143.3 bu/acre and the crop at 12.02 billion. The French farm ministry pegged that nation's maize production at 14 million tonnes, up from 13.3 million last year. China corn prices are at a record high, and hog producers in China are still showing a strong profitability reading. However, China anticipates a new crop soon, and US prices are said to be too high to attract imports at this time.
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