March corn was unchanged late in the overnight session. Outside markets look slightly negative with a strong US dollar and weakness in equities. The market posted yet another new high for the move overnight with talk of extremely tight US corn supply into the end of the marketing year helping to provide a base of support. Ideas that Mexico may have lost 4 million tonnes of corn production to freezing weather lent support. With weaker ethanol plant profit margins over the past few weeks, traders are starting to see some effect on demand. However, there is widespread talk that the market has work higher to see a significant slowing of corn demand. The market saw late buying by fund traders on Friday, which helped drive futures to new contract highs. This was the first close for the nearby futures above 7.00 since June of 2008. (March closed at 7.06 1/2.) New export demand and speculative carryover buying from the bullish USDA supply/demand report news lent support. South Korea bought 55,000 tonnes of optional origin corn and 55,000 tonnes of Canadian feedwheat. March corn gained 28 cents on the week last week. News from the USDA that exporters sold 210,000 tonnes of US corn to Mexico helped to provide underlying support on Friday. This followed news that Mexico producers will need to replant approximatley 741,300 acres due to freezing weather. The Commitments of Traders report as of February 8th showed non-commercial traders were net long 431,755 contracts, a decrease of 7,683 for the week. Commodity index traders held a net long position of 392,302 contracts, down 10,367 contracts for the week. The selling trend of the fund traders as a short-term negative force. In the disaggregated report, the producer/merchant/processor/end user category or commercial traders reduced their net short position by over 7,000 contracts to 623,375. Israel is tendering to buy 40,000 of corn from various locations and is also tendering for 28,000 tonnes of corn products and 8,000 tonnes of meal. Indonesia plans to import near 2 million tonnes this year from 1.5 million last year.