December corn was unchanged late in the overnight session with the market moving to the lowest level since November 1st in overnight action. Outside market forces look mostly negative this morning with a strong US dollar and weakness in energy and equity markets. The market continues to find some underlying support from very tight cash markets and a firm basis and the outlook for a tight ending stocks for the 2011/12 season. However, corn remains expensive looking against wheat, soybeans, meal, and international buyers continue to look for cheaper alternatives. This may have sparked one of the slowest export sales week's in recent memory last week. Closing lower on the session of a so called bullish USDA report last week and also closing lower on the week may be seen as a negative technical development for the market. A hefty open interest for December corn and fund trader long liquidation selling are now seen as potential negative forces. December corn closed 7 cents lower on the session Friday and down 17 1/4 cents for the week. The market saw some early buying and higher trade supported by strong gains in the US and European stock markets, higher trade in energy and metal markets and a sharp break in the US dollar. However, fund trader selling emerged to push the market moderately lower on the day and to the lowest level since November 1st. Traders are nervous over the possibility of increased selling from fund traders, and speculators who were expecting to see higher trade off adjustments lower in yield and supply from the USDA reports last week. News of a UK wheat sale to a US feed manufacture last week to replace corn in the feed mix helped to pressure the market as well. In addition, there was talk of feedwheat sales from Brazil to Mexico and/or the US, and this added to the negative export demand outlook. The lowest weekly export sales since October of 2010 added to the bearish export demand tone. Argentina 2011/12 corn production is expected near 26 million tonnes by the Rosario Grain Exchange which is up from 21.4 million last year. Strong profit margins for US ethanol producers and much improved margins for US livestock producers have helped support the strong cash basis. Talk of larger plantings in the US next year and a return to more normal yield plus good weather early for the South American crops are seen as negative forces. If we leave demand unchanged from this year and assume a 2 million acre increase in plantings next year and a yield of 164 bu/acre, ending stocks jump from 843 million bushels this year to 2.336 billion bushels for the 2012/13 season.