March corn was 1/4 cent higher overnight. The dollar index was higher and crude oil was mixed to lower.

The corn market traded sharply lower yesterday amid a general sell off in commodity and financial markets. This took the March contract to a new low for the move and a new low close. Traders indicate that the negativity centered on fears of an even steeper decline in the economy. Funds were large-scale sellers in corn yesterday. Improved moisture in Argentina also weighed on prices after months of dry weather there. Corn futures prices were lower in India overnight amid reports of an outbreak of bird flu in the NE. This is an area that has seen a number of outbreaks in the past. However, prices were only marginally lower in the overnight session in the US. Farmer selling in the US is said to be exceptionally light to start the week. The Commitments of Traders Report for the week ending 11/25 showed funds as substantial buyers. Index funds were net buyers of 8,982 contracts while trend-following funds were net buyers of 3,783 to reduce their large new net short position. Small traders were large net sellers of over 13,000 contracts. This week's export inspections in corn were 32.580 million bushels. Cumulative inspections stand at 21.0% versus a 5-year average of 24.6%. Inspections need to average 37.8 million bushels each week to reach the USDA's projection for 2008/09.

Snow and rain are expected in the central and north central Plains tomorrow with some activity possible down into the Texas Panhandle. This activity should also cover the NW and west central corn and soybean belts. Conditions are then expected to be mostly dry until Monday when a similar system may bring moisture a bit farther east into the north central Midwest. Conditions in Argentina are now generally favorable although more rain is needed.