December corn opened 30 3/4 cents lower on the session at 716 1/4 and established an early range of 702 (limit-down) to 717. The corn market opened sharply lower again this morning with early price levels exceeding the normal limit of 30 cents. This is due to the fact that corn limits are expanded to 45 cents today. Traders indicate that the weakness in corn has stemmed from a number of factors. These include a liquidation trend by funds as seen on recent Commitments of Traders Reports as well as improving weather that may allow yields to creep back near 150 bushels per acre or, possibly higher. This compares to a current trend line yield of 153.9 bushels per acre. Traders also cite the ethanol factor as a growing worry. The G8 meeting expressed concern this week over the cost of food and the effect that bio-fuels production has had on prices, and the New York Times reports today that the EU is considering cutting back on bio-fuel mandates due to food inflation and environmental factors. The EPA will rule on the state of Texas' request for a partial waiver of its bio-fuels mandate on July 25th and that will be closely watched by traders. In the meantime, the USDA will release its latest Supply and Demand Report this Friday which many traders are expecting to show some changes in demand, at least for new crop. Brazil's Agriculture Ministry cut its estimate of their corn crop to 57.5 million tonnes from their previous estimate of 58.4 million. Basis levels at the Gulf are mainly steady this morning with the only feature being the reopening of the Upper Mississippi and the fact that this has erased any short term concerns over supply in the export pipeline.