December corn was up 1 1/4 cents late in the overnight session. Outside market forces look positive this morning with a weak US dollar and strength in metals and energy markets. While domestic demand appears to be quite strong, fund selling emerged to drive the market sharply lower yesterday. Ideas that export demand will remain slow and that end users from around the world will continue to find alternatives to US corn helped to pressure. China is absorbing a record crop of their own and re-stocking demand may not re-emerge until the spring. In addition, traders see a big jump in corn availability in early 2012 with producers in South America looking at a sharp jump in production and traders also see much greater supply in the US next year. Even if we assume that US demand will increase by 500 million bushels next year to 13.110 billion bushels, if we see a 2.5 million acre jump in plantings and a 164 yield, ending stocks for the 2012/13 season come in at 1.983 billion bushels with a stocks/usage of 15.1%. This compares with 843 million and a stocks/usage of 6.7% for this season. December corn closed sharply lower on the session yesterday and pushed to the lowest level since October 11th. Aggressive fund selling emerged as bearish outside market forces plus more and more signs of stiff competition for feedgrains on the world export market helped to pressure. South Koreas largest feedmaker bought 55,000 tonnes of feedwheat and 125,000 tonnes of corn in their overnight tender. Just 70,000 tonnes of the corn order was US. Another week of very poor export sales plus a long liquidation selling trend pushed the market lower and selling pressures increased on the move under Monday's lows. December corn is now down as much as 55 3/4 cents from the bullish USDA report date of November 9th. Weekly export sales came in at only 208,900 tonnes which was well below trade expectations and the lowest weekly sales total since October 14th of 2010. Cumulative corn sales stand at 53.0% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 40.9%. Sales of 451,000 metric tonnes are needed each week to reach the USDA forecast. Thailand feed manufacturers bought 150,000 tonnes of Australia feed wheat and this added to the negative tone for US corn exports. Rumors of lower cash basis levels in central Illinois added to the negative tone as well. Open interest pushed to the highest level since June. Traders see Argentina corn as cheap enough to move into Mexico or even the East Coast of the US if it were not for quality constraints.