December corn was 6 cents higher overnight. The US dollar was higher during overnight trade and crude oil was higher.

Corn put in a volatile day yesterday that saw prices mainly higher throughout the day and into the close despite lower closes in wheat and soybeans. Traders are said to be concerned about potential losses in yield due to dry weather in August and potential losses in yield due to frost in September or early October, but field reports generally back up the USDA's reports of very good conditions and yield potential overall. Exports are on an upswing of late with strong US sales numbers over the past two export sales reporting periods and Indian corn exports expected to register a big increase over last year in an export season that ends in September. Funds were buyers again yesterday in corn with at least 6000 contracts bought early and possibly more on the close. Basis levels were unchanged to higher across the US yesterday.

Dry conditions remain a concern in the Midwest with the first significant rain not expected until Friday. More widespread coverage is expected on Saturday and Sunday, but amounts are not expected to be substantial. The Delta up through Arkansas saw further relief over the past 24-36 hours with more rain possible into next week. The 6-10 day forecast calls for dry weather in most growing areas with above normal temperatures in the western corn and soybean belt.