950805

CBOT corn

futures slid

on good

crop weather

CHICAGO: Nearly ideal growing conditions for the US corn crop pressured CBOT corn futures to a lower close, traders said. on Friday.

"It's just ideal corn growing weather and there are a lot of crop estimates coming out," said Ron Kucha of O'Connor and Co.

Traders cited the prospect for closely-watched analytical firm Sparks Companies to release to clients late today its estimate for the 1995 US corn crop.

USDA on August 11 will release its August crop forecast and the market was evening up before that data.

Corn was underpinned by active exports. USDA Thursday said the corn exports for the week ended July 27 were at 1.223 million tonnes, down from the previous week but still at a strong pace.

Corn closed 1/2 to 3-1/4 cents per bushel lower, with September down 2-3/4 at $2.76-1/4.

A slowdown in wheat exports, lower cash markets and the European wheat harvest pressured CBOT wheat futures to a lower close, traders said.

News of a good Australian crop also hit prices.

"It's just a steady erosion in wheat. There are a lot of export rumors around but nothing has been confirmed," said Ron Kucha of O'Connor and Co.

There was talk early that Egypt may be tendering for US wheat and Bangladesh this week is in the market. But a senior Egyptian embassy official said they are not happy with current high prices and may not buy any more until next month.

The soft red winter wheat basis market early today fell six cents per bushel at the Gulf for nearby shipment with good movement and strong freight rates pressuring the market.

Also there are good yield prospects in the US Northern Plains spring wheat growing region and the European crop is reported showing good quality and satisfactory yields.

"Their (European) attitude is going to be with wheat at 20-year highs why hold it? They'll sell it," said Steve Bruce of E.D. and F. Man International.

Wheat closed 3-3/4 to 8-1/2 cents per bushel lower, with September down 6-1/2 at $4.34-1/2.

Aggressive fund selling drove CBOT soyoil futures to a lower close and soymeal followed suit, traders said.

"It's definitely the managed side (funds) selling," a trader said.

Funds sold from 2,500 to 3,000 lots of soyoil with most of those offers in the December contract. Sell stops were hit when that month broke technical support at 26.00 cents per lb and again at 25.90, they said.

Merrill Lynch Futures, R.J. O'Brien and Griffin Trading were the key sellers.

Soymeal also dropped in step with the sag in soyoil and on weather-related selling in the soybean pit.

Weather in the US soy states has turned nearly ideal for crop development and some outlooks for warmer weather next week has lost favor with some bullish-minded traders.

Aggressive selling of soybean futures and sales of soy calls in the options pit by Refco Inc added pressure, the traders said.

Soyoil closed 0.10 to 0.43 cent per lb lower, with August down 0.36 at 26.10. Soymeal ended $2.00 to $4.00 per ton lower, with August down $3.30 at $172.40.