December corn is trading 2 cents lower near 7:30 am CST. Corn traded slightly lower most of the overnight session following yesterday's gains. Dalian corn was slightly lower overnight. European and Asian markets have a positive tilt following comments made by Germany's Chancellor that suggests she supports the ECB's intervention in the bond market to stabilize their debt crisis. The Euro bounced on the news and German bonds subsided. The US Dollar is slightly lower this morning which is supportive to commodities. The corn market saw another night of steady to lower trade following yesterday's positive session. The weaker move in corn was linked to positioning ahead of the weekend but losses were limited due to a second consecutive night of surging wheat prices. Thursday's traded volume was slightly weaker than the day prior, with 191,324 contracts trading but open interest grew by 12,499 contracts, signaling new longs entering the market. Open interest has grown by nearly 20,000 contracts in the last two days as December corn consolidates just above the 800 level. Corn basis was steady to slightly higher across the US Midwest. Lack of country movement and slow farmer selling provided a firmer tone to cash markets. Slow barge movement along the Mississippi river caused by lower than normal water levels a thin physical market stabilized basis levels in the Gulf of Mexico for the second day in a row. Internationally, the Argentine Agriculture Ministry pegged their 2011/12 corn output at 21 million tonnes. This was unchanged from their previous estimate. Parts of Ukraine have seen cool temperatures and better rainfall recently. Temperatures are expected to heat back up which should help corn crops. Drought conditions earlier this summer have cut corn production in Ukraine from 24 million tonnes to 21. Exports are set to decline from 14 million tonnes to 12.50 million tonnes. Corn production in several provinces in China could see lower than expected production this year due to bugs problems. The USDA recently increased their production estimate from 195 million tonnes to 200. Some Chinese analysts suggest 500,000 to 1 million tonnes could be at risk due to the pests. Shortages of seed and fertilizer in Brazil could have long term implications on the corn market. Reports have surfaced that suggest over a million tonnes of fertilizer, sitting at ports in Brazil, may not make it to local corn and soybean producers. Poor infrastructure, port strikes, and rain have caused nearly 60 ships to bottleneck. Poor railways and roads could exacerbate the problems. The tight, domestic supply of fertilizer could raise prices in the short term as farmers are just weeks away from planting this year's crop.