May corn was up 3 3/4 cents late in the overnight session. Outside markets look somewhat positive with a lower US dollar and higher equity markets. There were 10 deliveries against the March contract overnight. Ideas that the jump in gasoline prices and lower natural gas prices of the past week will help boost ethanol production and help tighten corn supply have helped support the rally in corn this week. A tax probe in Argentina against grain exporters plus the uncertainty over the government's export authority are factors which were seen as slightly supportive, as these factors could slow the pace of exports. The corn market stopped following the stock market yesterday and started following the crude oil market. This supported a moderate rally into the close, with July corn matching the contract highs of February 22nd and other old crop contracts closing strong as well. July corn pushed to new highs for the move overnight. December new crop corn closed slightly lower yesterday. The market inched higher early in the day finding support from outside market forces, talk of too much rain in Brazil for harvest and higher soybean values. The turn from higher to lower in the US stock market and some risk-avoidance selling seen for commodity markets in general helped to pressure the market into the mid-session. Cash basis levels at the gulf were firm. July corn closed at a $1.33 1/2 premium to December versus a premium of $0.85 on February 1st. Traders will monitor the weekly ethanol production report today. If we assume all of the USDA's Outlook Forum supply/demand numbers are correct but we adjust yield to the same as last year, ending stocks come in at just 99 million bushels. The current Outlook Forum estimate is 865 million bushels. Even if we assume a simple 5-year average yield, ending stocks would come in at 221 million bushels. In other words, the market needs a big jump in plantings and a high yield to avoid extreme tightness. A wet and cool trend into the middle of March for much of the Midwest might be seen as a supportive force.