GRAINS-CBOT hesitant after drop; Euronext hits fresh lows

* CBOT hesitates on good weather, rising outside markets

* Technical sales, harvest push Euronext wheat to new low

* Rapeseed continues slide on talk of big yields in Germany

PARIS/SINGAPORE, July 27 - Chicago grain and soybean futures were little changed on Monday following a pullback in the previous session, with the market torn between ideal crop weather and optimism over a global economic recovery.

But European futures fell sharply to hit new 7-month lows, pressured by the pre-weekend drop in Chicago, a surge in the euro and the ongoing harvest in Europe, traders said.

Rain in recent days has raised concerns about the quality of the wheat crop and the weekend's harvesting in France showed mixed results, operators said.

"There were some disappointing results," one trader said, citing in particular a fall in specific weight, a measure of milling yields.

Other operators said yields were satisfactory and could lead to an upward revision in output estimates above 36 million tonnes.

Rapeseed on Euronext slid around 3 percent, with operators citing talk of big yields in leading European Union producer Germany, which were said to be as high as 5 tonnes a hectare.

Euronext rapeseed had tumbled on Thursday after oilseeds institute Cetiom said the French crop was on the way to exceeding 5 million tonnes for the first time.

By 1134 GMT, benchmark November milling wheat on Euronext was down 1.81 percent at 135.50 euros a tonne, just off an opening low of 135.25 euros, its weakest level since Dec. 12. Traders said the fall was also due to the triggering of sale stops.

November rapeseed was down 2.90 percent at 259.75 euros a tonne, a low since Dec. 24 and close to the contract low of 258.25 euros.

FAIR U.S. CROP WEATHER

On the Chicago Board of Trade, prices were torn between favourable crop weather, usually bearish for the market, and support from a weaker dollar and rising oil and equities.

CBOT September corn futures fell 0.24 percent to 3.15-1/2 a bushel and August soybeans fell 0.10 percent to $10.20 a bushel.

"At this time it still looks that new crop is developing well which is continuing to keep corn and soy under a bit of pressure," said Toby Hassall, an analyst with Commodity Warrants Australia.

The corn market was also hesitating between the benign weather outlook and the expectation of a cut in the U.S. government's area estimate in its next monthly crop report.

The U.S. corn crop is projected to be the second-highest ever.

Ample global wheat supplies and poor demand for U.S. wheat, which is too expensive for most overseas buyers, also kept pressure on wheat prices, although traders remained cautious on the impact of rain in Europe and a dry outlook in Australia.

CBOT September wheat edged up 0.24 percent to $5.17-1/2 bushel.

Oil, which often directs movements in grains given their use in making alternative fuels, rose towards $69 a barrel as optimism over a global economic recovery later this year countered tepid fuel demand.

Grains prices as of 1134 GMT Product Last Change Percent Move End 2008 Ytd Percent

move CBOT corn 315.50 -0.75 -0.24 407.00 -22.48 CBOT soy 1020.00 -1.00 -0.10 972.25 +4.91 CBOT wheat 517.50 1.25 +0.24 610.75 -15.27 CBOT rice 13.50 0.09 +0.67 15.34 -11.99 European wheat 135.50 -2.50 -1.81 145.75 -7.03 US crude 68.63 Euro/dollar 1.4284 (Front-month contracts except for European wheat whose August contract is illiquid) (Corn, soybean, wheat U.S. cents per bushel) (Rice U.S. cents per hundredweight) (European wheat in euros per tonne) (Crude $ per barrel)