March corn was down 1 1/4 cents late in the overnight session. Outside markets look positive this morning with a weak US dollar and higher gold and energy markets. The sweeping reversal in corn yesterday after it posted new highs for the move is an indication of a potential near-term top, according to technical traders. However, recent reversals on January 19th and February 7th failed to see much follow-through. A more active demand tone from Mexico after thier recent freeze damage has traders looking at a tightening supply ahead, and this helped provide underlying support. A negative reaction to indications of better export demand early in the session yesterday was viewed as a bearish development. Some traders saw the new USDA baseline projections as a reason for longs to take profits. The USDA baseline projections for the 2011/12 season suggest planted acreage at 92 million acres, up 3.8 million from last year. This appeared to be a bit higher than trade expectations. These projections were released as part of the budget process. They are based on USDA forecasts from this past November. The USDA will provide updates at their Outlook Conference on February 24th and 25th. News from the USDA that exporters sold 145,000 tonnes of US corn and 129,600 tonnes of US sorghum to Mexico failed to support the market yesterday. However, some traders see little room for any additional surprise export demand, as ending stocks are already thought to be near pipeline minimum. Israel is tendering for corn and corn products. Indonesia is expecting to import of close to 2 million tonnes for the coming year. A surge higher in gasoline prices may have helped provide some underlying support yesterday. Weekly export inspections, released during the session yesterday, came in at 26.14 million bushels which was below trade expectations and below the 41.8 million necessary each week to reach the USDA projection for the marketing year. China sold a total of 160,034 tonnes of corn from state reserves in its first auctions after the Lunar New Year holiday. They have sold 51 million tonnes of corn from their reserves since the 2008/09 season.