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Corn, soyabean

prices fall

as crops

improve

CHICAGO: Corn and soyabean prices fell Tuesday after a government report showed improved crop conditions in key growing regions.

Platinum prices moved higher after falling to 4-1/2 month lows last week. Gold also gained, while silver ended lower after an early rally.

A weekly Agriculture Department report late Monday rated the U.S. corn crop 66 percent good to excellent, up from 64 percent the previous week, while soybeans improved to 62 percent good to excellent from 59 percent the previous week.

"The crop is getting better and with days like today it should keep getting better," said Vic Lespinasse, vice president at Dean Witter Reynolds.

Extremely hot weather throughout the central United States in recent weeks raised concern the heat would damage the maturing corn and soyabeans. However, analysts and crop reporters said adequate soil moisture helped the crops survive.

A rally in the dollar and a lower-than-expected export number for corn in Agriculture Department's weekly export report also put pressure on corn prices.

The department said Monday that 40.198 million bushels of corn was exported this past week, which was less than many analysts expected.

Corn prices were not expected to fall much further, however, because export sales have nevertheless been robust.

The Agriculture Department reported Japan bought 109,728 metric tons of corn Monday, and an undisclosed country bought 250,000 tons on Tuesday.

At the Chicago Board of Trade, corn closed down 1/4 cent at $2.81 a bushel for September delivery and down 1 cent at $2.80-1/4 for December. Soybeans fell 4 cents for September delivery to $5.90-1/4 a bushel.

Among precious metals, short-covering lifting platinum, which has been battered repeatedly by fund selling in recent weeks and hit a 4-1/2 month low last Friday.

At the New York Mercantile Exchange, October platinum settled $3.70 higher at $419.10 an ounce.

On New York's Commodity Exchange, gold rose but ended off its highs after an early rally was capped by producer selling, traders said. December gold settled $1 higher at $390.90 an ounce in heavy trading.

Silver ended slightly lower, after a rally to two-month highs stalled and speculative selling helped drive prices back down, traders said. September silver settled 0.7 cent lower at $5.345 an ounce.

NYMEX gasoline closed lower as traders expected a rise in imports in the aftermath of Hurricane Erin. Late Tuesday, the American Petroleum Institute report confirmed a rise in gasoline, with supplies up 281,000 barrels during the week ended Aug. 11 -- more than some analysts expected.

September gasoline closed down 0.41 cent at 54.82 cents a gallon. September heating oil was off 0.03 cent at 48.74 cents a gallon, and September crude oil lost 1 cent to end at $17.47 a barrel.-Reuter