July corn traded 3 1/2 cents higher overnight. The dollar was lower again overnight and crude oil was higher.

Corn broke sharply during most of the session yesterday on what traders said was renewed concern that improved US weather would allow farmers to plant more acres to corn and to get most of the crop planted at a near-normal pace. However, old and new crop contracts rallied sharply into the close to finish higher on the day. Prices were also higher overnight. The USDA has been directed by the Senate Energy Committee to report on the impact of energy needs on food costs by May 30th, and this may raise renewed concerns about whether Congress will continue the longer-term national mandates for ethanol production and blending. The Baltic Exchange's sea freight index hit a new record high yesterday, eclipsing the all-time high set late last year. This week's Export Sales Report showed a corn total which was better than expected. Net sales were 547,200 tonnes in old crop and 139,300 tonnes in new crop. Sales of 394,500 tonnes are needed each week to reach the USDA old crop projection. Total sales to date stand at 89.9% of the projected total compared to a 5-year average of 81.1%.

Moderate to heavy rains fell over the past 24-36 hours in east Texas, Louisiana, Mississippi, central Missouri and central and southern Illinois with light to moderate amounts in the southern Plains and mostly light amounts in the southern and eastern Midwest. Most growing areas for all crops were fairly dry in the late overnight period. The forecast is remaining somewhat dry into the weekend, but the big news is that the cool temperatures that had been forecast for most of the Midwest seem to be retreating into the upper and eastern Midwest. Forecasters are now calling for above normal temperatures in all growing areas after May 21, with the highest temperatures centered just to the south and west of Chicago. A 48,000 tonne tender by an Israeli consortium has been postponed. No new tenders have been reported.