March corn was trading 4 cents lower late in the overnight session. Outside market forces look slightly negative overnight as the hot inflation number from China may bring about ideas that monetary policy in China could stay tight. The results of the USDA report should set the tone today. Traders see US ending stocks down about 50-75 million bushels due to expanding export demand. Ending stocks in January were pegged at 846 million bushels. Traders see Brazil production near 59.2 million tonnes from 61 million in the last USDA update. Argentina production is expected near 21.6 million tonnes, down from 26 million in January. March corn closed slightly higher on the session yesterday and December corn slightly lower. The early rally pushed the market up to a new high for the week but resistance at last week's highs held and the market broke sharply lower on the day and down to the lowest level since January 31st. March had a 16 3/4 cent range with volatile, two-sided trade. Outside market forces shifted from positive to negative and back to slightly positive on the session and talk of poor ethanol plant profit margins helped to spark long liquidation selling. Ethanol production for the week ending February 3rd averaged 923,000 barrels per day. This is down 1.7% vs. last week and up 2.6% vs. last year. Total Ethanol production for the week was 6.461 million barrels. Corn used in last week's production is estimated at 98.32 million bushels. Corn use needs to average 94.619 million bushels per week to meet this crop year's USDA estimate of 5 billion bushels. Weekly production was down to the lowest level since the week of November 18th. Stocks were 21.063 million barrels. This is up 0.56% vs. last week and up 7.6% vs. last year and another new all-time high. For the weekly export sales report, also released before the opening, traders expect sales for corn sales near 975,000 tonnes from 974,900 last week. The Brazil government (Conab) believes that producers will increase plantings for the winter corn crop and that production could reach 60.83 million tonnes. The USDA was at 61 million in January.