Corn reversed from early strength to close lower on the day after the EIA reported record high ethanol inventories of 27.1 million barrels and confirmed significant demand destruction for corn in the ethanol sector. Refiner demand for blending ethanol into gasoline was recorded at its lowest level since May 2008 while ethanol plant output fell to its lowest level in 11 years. The trade is bracing for bearish demand cuts in tomorrow’s WASDE report. The average trade guess is for a 112-million bushel increase in USA old crop corn ending stocks. Brazil soybean production is expected to be trimmed by a few million tonnes. In the wheat department, the trade will be closely following any changes to Russia, Ukraine and Kazakh wheat export projections following recent political actions to curb exports and tame domestic inflation.