December corn was down 6 3/4 cents late in the overnight session. Outside market forces look negative today, with lower energy and metal markets and a strong US dollar. The US supply situation could still tighten into next year if the current demand estimates are too low or if there are further revisions lower in production, but the jump in world corn and wheat stocks, led by higher production in the Black Sea region plus low-priced wheat on the world market are factors which leave buyers with less urgency, and this could slow the volatility on corn prices in the weeks just ahead. The break under $6 was met with active buying from China, with indications that China Grain Reserves Corp. bought about 1.5 million tonnes of corn this week. December corn closed slightly lower on the session yesterday after first moving to the highest level since September 27th. The USDA report had some positive news on supply, but demand indicators were weak, and higher than expected world stocks plus a jump in world ending wheat stocks were seen as negative. However, holding onto much of the gains from Tuesday and more talk that China has already booked more corn than the current USDA estimate for the entire season helped to provide some underlying support. The positive news from the report was a smaller than expected crop. Production came in at 12.433 billion bushels, about 60 million bushels below trade expectations. However, exports were revised lower by 50 million bushels to 1.6 billion, which is a nine year low. Some traders have already boosted their export forecast due to China restocking. Ending stocks were pegged at 866 million bushels, which is about 60 million above trade expectations and compares with 672 million last month. This is still a historically tight 6.8% stocks/usage. Yield was unchanged at 148.1 bushels per acre. World ending stocks were adjusted higher to 123.2 million tonnes from 117.5 million last month and 114.5 two months ago. Last year was 129.7. China production was revised higher to 182 million tonnes from 178 million last month, and this was a surprise to some traders who were looking for a smaller production after a smaller estimate from the US Grains Council this month. The China National Grain and Oils information Centre overnight pegged China production at 184.5 million tonnes. While traders noted active buying from fund traders on the rally Tuesday, open interest was down 15,416 contracts. Ukraine's production was revised higher by 3 million tonnes and exports by 2 million tonnes, which was seen as another, minor negative development from the report. While South America production was left unchanged, it was still 9 million tonnes above last year, and traders see the possibility of even higher production if weather cooperates.