July corn traded 3 3/4 cents higher overnight. The dollar was sharply lower which helped support.

Traders indicated that yesterday's weakness came on continued expectations of rapid planting progress along with selling by spreaders who had been long corn and short wheat. The strength overnight was said to result from the Crop Progress Report and from a strong US dollar with planting progress below expectations. The report showed that 73% of the overall corn crop was planted as of Sunday compared to 88% last year. This was only 22% progress for the week versus expectations of 25% or more. The 10 year average for this time of year is 85%. The highest percent complete was 94% in 2000, while the lowest was 47% in 1995. Planting is lagging in Indiana and Ohio with some delays still evident in southern Illinois and southwestern Illinois. The outlook for drier weather in the far eastern sections of the Midwest for the week ahead suggests significant progress could be expected in Ohio and Indiana for the week ahead. Iowa showed rather surprising progress with 78% planted versus just 46% the week before. This week's export inspections were 27.3 million bushels. Weekly totals need to average 48.9 million bushels to reach the USDA's projected export total for the current crop year. Total inspections to date stand at 70.1% of the projected total compared to a 5-year average of 66.1%. A US Senator has introduced legislation to freeze the federal mandate for corn-based ethanol. This news was partially offset yesterday by statements from the USDA Secretary of Agriculture that ethanol is not having a "major" impact on food prices and is downplaying request to change.

Moderate rains fell again overnight in south central Indiana and into east central Ohio. These areas have been wet over the past 7 days, and they are now perhaps the areas that are farthest behind in terms of planting progress. Rains today are expected across the north central and northeastern Corn Belt. Dry weather is expected tomorrow and Thursday should bring rains into the west central Corn Belt through most of Illinois and into Kentucky. Temperatures are expected to warm up considerably by at least 20 degrees between today and Sunday in the northern and northwestern Corn Belt. The central belt down to the Ohio River Valley should warm by at least 10 degrees. Most areas are expected to be dry from Friday through Sunday. No new tenders have been reported.