March corn was trading 5 cents higher late in the overnight session. Outside market forces look positive this morning with a sharp break in the US dollar and strength in equity markets. Diminished risk concerns after Greece approved austerity measures that allow them to receive additional bailout funds helped support. The outside forces are helping to support the market this morning but focus of attention is shifting to the new crop outlook for corn and to the short-term demand trends. Baseline reports will be released today by the USDA which is the first new crop outlook of the season and many see a surge in ending stocks for the coming season if yield is close to normal. If planted area is up 2.6 million acres to 94.5 million acres and yield comes in at 162 bu/acre, ending stocks would improve to near 1.64 billion bushels from 801 million this season. This includes an increase in usage for the 2012/13 season of 500 million bushels. China corn futures closed higher overnight and when we convert Yuan to dollars, China corn is trading near $9.63. March corn closed 5 1/4 cents lower on the session Friday and down 12 3/4 cents for the week. The lower close for the week after positing a new high for the move is seen as a negative technical development. December corn pushed sharply lower and down to the lowest level since January 24th and closed 21 3/4 cents down for the week. Bearish outside market forces with a surge higher in the US dollar and weakness in energy and equity markets helped to pressure. Concerns on the Greek debt deal and further weakness in the wheat market helped pull the market lower. Private exporters reported a sale of 240,000 tonnes of US corn to Egypt which helped to provide some underlying support. The Commitments of Traders reports as of February 7th showed Non-Commercial traders were net long 233,313 contracts, an increase of 17,995 contracts for the week and the buying trend is seen as a short-term positive force. Commodity Index traders held a net long position of 349,616 contracts, down 617. South Korea seeks 385,000 tonnes of optional origin feed wheat on the world market which is a bit of a negative development for corn. View All Market Commentary