December corn was down 3 3/4 cents late in the overnight session. Outside market forces look bearish again this morning with a strong US dollar and weakness in energy and equity markets plus a further sell-off in gold. Cash markets remain strong, but a sharp trend from fund traders to avoid risky assets due to European debt developments has left the market in a sharp sell-off. Domestic demand remains strong, but traders see a continued flow of feedwheat and cheaper corn from India, Ukraine and Argentina as a negative for US corn exports. The lack of a weather issue so far in South America is also seen as a negative. Traders believe that prices are now cheap enough compared with China's prices to expect some buying soon, but so far there has been a lack of interest. Options expire for December corn today. While there appears to be increased demand from domestic end users on breaks, fund selling was the driving force for lower trade in corn again on Wednesday. December corn closed sharply lower on the session, led by further weakness in global equity markets. The early sell-off pushed the market down to the lowest level since October 4th with December corn now down as much as 81 3/4 cents off of the November 9th peak. Macro economic fears helped to spark a further long liquidation selling trend from fund traders Wednesday. Ethanol production for the week ending November 18th averaged 917,000 barrels per day. This was up 0.11% from the previous week and up 2.9% from last year. Total ethanol production for the week was 6.419 million barrels, which was the highest in about 1 year. Corn used in last week's production was estimated at 97.68 million bushels, compared to 96.183 million bushels needed each week to reach the USDA forecast for the season. Israel bought a total of 100,000 tonnes of corn, feedwheat and barley in a tender, with Ukraine thought to be the seller. The International Grains Council cut their forecast for 2011/12 global corn production to 853 million tonnes from their previous estimate of 855 million and from 826 million last year.
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