December corn was down 6 1/4 cents late in the overnight session. Outside market forces look mostly negative this morning with a strong US dollar and weakness in metal and equity markets. The euro crisis of the past few weeks could slow global growth, and the focus of attention may shift to super committee results (or lack thereof) in the US soon. Traders remain nervous over the economic prospects ahead. Outside market forces look negative, and the market is also concerned that more and more traditional importers of US corn are finding adequate supply and cheaper prices for alternatives. Reports that Japan may have bought nearly 800,000 tonnes of Ukrainian corn for November to March shipment helped to pressure the market overnight. In their corn tender yesterday, South Korea bought 70,000 tonnes of US corn and two 55,000-tonne cargoes of optional origin corn. In addition, it appears that South Korea has bought 110,000 tonnes of feedwheat. December corn closed sharply higher on the session yesterday, having corrected nearly half of the losses from the 4-day slide. Open interest has stayed in an uptrend and has reached its highest level since mid-June. Strength in the soybean market helped support corn early in the session yesterday, but weakness in outside market factors and more talk of key corn importers finding alternatives helped to pressure the market. However, commodity markets in general turned higher with strong gains in soybeans, crude oil and cattle helping to support. Weakness in the equity markets and a firm US dollar added to the negative tone early, but as the stock market pushed higher on the day, many markets found renewed buying support from a more risk on mentality from speculators. Cash markets remain very strong, and ethanol margins are high enough to encourage aggressive biding for corn. Weather is off to a good start in South America, where corn production is expected to jump sharply for this season. The USDA attache in Europe indicated corn production for the EU at 62 million tonnes, up 1 million from previous forecast.
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