March corn was down 9 3/4 cents to 700 late in the overnight session after first posting a new contract high at 724 1/4 in overnight trade. Outside markets shifted from very bullish to negative with a break in metals, a major setback from the highs in energy markets and a turn up in the US dollar. Traders see an extremely tight stocks situation ahead and a strong cash market now as reasons to continue to trade from the long side, but uncertainty typically leads to liquidation, and the market appears to have seen aggressive long liquidation selling overnight as fund traders shifted away from risk. Some concerns that the surge higher in food and energy prices could help slow growth in the world economy was also seen as a negative. Traders await news from the USDA Outlook Conference later this week for an outlook for the 2011/12. Traders viewed the first set of numbers released last week, which were compiled in November, as negative, so the bar has been set low. March corn closed 3 cents lower on the session Friday but up 3 1/4 cents for the week. A sharp sell-off in soybeans and wheat helped to pressure, but corn managed to avoid a major collapse. A big jump in open interest of 22,476 contracts on the rally Thursday was seen as supportive. Private exporters reported to the USDA that 156,100 tonnes of US corn was sold to Mexico. Traders see the possibility of 3-4 million tonnes of extra imports of grains in the wake of the freeze there. Israel bought 30,000 tonnes of US corn. News of a China bank reserve rate increase helped pressure the marketm, but buyers emerged on the setback. The Commitments of Traders reports as of February 15th showed Non-Commercial traders were net long 412,838 contracts, a decrease of 18,917 contracts for the week. Commodity Index Traders held a net long position of 376,972 contracts, down 15,330 contracts for the week. The selling trend of the fund traders is a short-term bearish force. China sold 218,190 tonnes from state reserves overnight from the 1.1 million tonnes offered.