May corn was trading 3 3/4 cents higher on the day late in the overnight session. Outside market forces look positive to start the day with a weaker US dollar and strong gains in equity markets. Metal and energy markets are also higher to help support. There are still no deliveries against the March contract and basis levels remain strong but ideas that US corn exports may have slowed on the recent bounce and fears of slowing gasoline demand in the US and the potential impact on ethanol production helped to spark the aggressive long liquidation selling yesterday. News that South Korea bought 110,000 tonnes of feedwheat may have helped to pressure and talk that US corn is still priced high relative to Black Sea feedwheat and other feedgrains may have helped add to the long liquidation selling from fund traders. The Buenos Aries Grains Exchange pegged the corn crop at 20.8 million tonnes this morning, down from 21.3 million as their previous forecast and down from the average trade guess for the report tomorrow at 21.25 million tonnes. China corn values continue to rally but traders seem to believe that China buyers will wait for their price before entering the market and new crop is likely to be bought before old crop. May corn closed sharply lower on the session yesterday and experienced the lowest close since February 21st. Funds were active sellers right into the close and the market closed near the lows. Long liquidation selling ahead of the USDA report on Friday plus talk of warm Midwest weather boosting planting progress early this year seemed to be the main negative forces. Traders see a revision down in old crop ending stocks and down in world ending stocks for the report on Friday but liquidation in wheat helped to pull the market moderately lower on the day early. Traders see US ending stocks coming down to near 785 million bushels from 801 million last month due to better export demand. Lower production from South America is also expected to pull world ending stocks down to near 123.5 million tonnes from 125.35 million last month and from 128.83 million last year. Ethanol production for the week ending March 2nd averaged 906,000 barrels per day. This was up 1.1% vs. last week and up 2.6% vs. last year. Corn used in last week's production was estimated at 96.5 million bushels as compared with a weekly average of 94.2 million bushels meet the USDA projection. Stocks were 22.07 million barrels, up 0.31% vs. last week and up 11% vs. last year to a new record high. A warm weather outlook has traders expecting increased planting activity in the south and delta soon. Iran is tendering for 100,000 tonnes of corn.