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Chicago Board of Trade corn futures fell sharply on Friday, pressured by continued good US crop weather and a sell-off in neighbouring soybean futures, traders said.
"From what I hear off the floor, the lion's share of the selling seems to be investment fund liquidation," said Dale Gustafson, analyst at Citigroup.
He estimated commodity funds had been net long about 91,000 CBOT corn futures before Friday's open.
CBOT corn futures were last down 3/4 cent to 4-3/4 cents per bushel, with May down 4-2/3 cents at $2.86 and July down 2-1/2 cents at $2.92-3/4, after hitting a three-month low.
Rand Financial sold 1,000 December and Refco Inc and Tenco Inc each sold 500 December, brokers said.
CBOT soybeans were last down 4 cents to 45-1/2 cents per bushel, with May down 43 cents at $9.70 and July down 47 at $9.35-1/2, after falling the daily 50-cent daily trading limit.
Nearly ideal US crop-growing weather also weighed on the market on Friday, brokers said.
Deliveries on Friday against the CBOT May corn contract were light at 116 lots; Tenco customers issued 51 lots and stopped 75. Registrations with the CBOT late Thursday totalled 904 lots, unchanged from Wednesday.

Copyright Reuters, 2004

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