March corn was up 2 3/4 cents late in the overnight session. Outside forces look mixed to slightly positive. The market appears to be consolidating in an attempt to correct the overbought condition, as the setback from the highs has been shallow and surging wheat prices and the outlook for extreme tightness into the summer have been seen as positive forces. There appears to be significant resistance developing for the longer-term prospects for ethanol production, as politicians and key industry professionals see another food or fuel debate ahead. This is occurring as ethanol production numbers are coming in stronger than expected and are high given the recent setback in profit margins for producers. Other demand categories are also showing a lack of demand destruction after the recent jump in prices, and this appears to be providing underlying support to the corn market. The market closed sharply higher on the session yesterday with new crop December corn posting a new high close. The surge higher in wheat, rice, sugar and other food commodities helped support strong gains, and news of continued active ethanol production plus another surge to new contract highs for hogs helped support ideas that corn demand is strong. This gave the market an additional boost after the higher opening. Argentina weather has improved but traders remain uncertain regarding just how much permanent damage may have occurred during pollination earlier this month. Rains for the next week, however, are expected to support better filling. Ethanol production for the week ending January 21st averaged 922 thousand barrels per day, up 0.99% from the previous week and up 104 thousand barrels per day or 12.71% from last year. Corn used in last week's production is estimated at 96.81 million bushels versus an average of 94.48 million bushels necessary per week to meet this crop year's USDA estimate of 4.9 billion bushels. Stocks as of January 21st, however, totaled 19.037 million barrels which, was up 1.236 million barrels from last week and up 1.237 million barrels from last year. Traders will monitor the weekly export sales report this morning, with many traders looking for sales near 750,000 tonnes from 1.029 million last week. Israel bought 40,000 tonnes of US corn overnight. Senator Tom Harkin led a group of other Senators in introducing a bill aimed at expanding the market for bio-fuels, including increasing the number of blender pumps.