Chicago grain futures drop on gloomy outside markets

Special Report:Global Financial Crisis

CHICAGO, March 5 (Chinese media) -- Grain futures in Chicago Board of Trade

declined on Thursday, pressured by bearish outside markets and weak sale data.

Corn future for May delivery fell 5 cents to 3.585 U.S. dollars a bushel.

May soybean lost 16.5 cents to 8.52 dollars per bushel and May wheat was down 8

cents, settled on 5.15 dollars per bushel.

The Dow Jones index plummeted 281 points to 6,594 points Thursday, the new

lowest level in 12 years, indicating more gloomy prospects of the U.S. economy,

which means the demand for grains may shrink further.

The U.S. Department of Agriculture released its weekly export sales report

for the week ending Feb. 26. Net sales of U.S. soybean exports were 156,000

metric tons, a market year low and well below analysts' estimates. Wheat exports

were 285,000 metric tons, decreasing 39% from the previous week and also under

trade estimates. The unexpectedly disappointed export sales put some pressure on

soy and wheat.

Only Corn did a good job with the exports above estimates at 792, 000

metric tons, which helped to limit its losses during the session.