December corn was 1 1/4 cents higher overnight. The dollar was somewhat lower overnight.

The corn market pushed sharply lower again yesterday, with the December contract stopping just short of 600. This makes an almost complete retracement of the weather rally that followed the lows of May 29th. Overnight trade was modestly higher, holding above yesterday's lows. Weather continues to be nearly ideal with the exception of cooler temperatures which may slow the advance of crop development in late-planted areas of the northern and NW corn belt. This in turn may renew concerns over the potential for frost damage since the corn crop is still running late. Export inspections yesterday were low, with one analyst noting that there is a decided lack of urgency in terms of shipping corn from the United States over the short term. The weekly Corn Conditions report showed some improvement in line with trade expectations. The overall crop was rated at 65% good/excellent compared to 64% last week and 62% last year. The 10 year average for this time of year is 64%. Silking has advanced to 34% compared to 13% last week, 72% last year and a 5-year average of 60%. Iowa was just 14% silking from 66% last year and 53% as the 5-year average. Minnesota was 7% vs. 52% average. Cash markets have remained quiet to start the week with farmers refusing to increase selling on the break thus far. Some traders are wondering if farmers will increase their selling on a rally or if the market simply pauses.

A cool front pushed southward into the northern Midwest over the past 24 hours and this in turn has pushed the latest band of rains farther south. Those rains moved across northern Nebraska and central and southern Iowa before taking a more southerly route to the east by crossing central and southern Illinois, southern Indiana and most of Ohio. Once again we are avoiding an extended period of very hot weather in major growing areas. As the front continues to push south it is expected to bring clear weather to much of the northern and NW corn belt, allowing some very wet areas to the north and NW to dry out. Rain is expected today in a broad east-west band across the southern half of the corn belt. Dry conditions should last through the weekend in most major growing areas with the exception of scattered rains in the south central corn belt on Friday and in the eastern corn belt on Saturday. No new tenders are scheduled in corn.