Silver futures fell sharply Friday on the New York Mercantile Exchange after an industry report revealed demand last year retreated for the first time in four years. On other markets, wheat and soybeans fell sharply, while crude gained a second day. Silver futures fell after the Silver Institute in its annual World Silver Survey reported demand fell to 840.6 million ounces in 1998 from 859.9 million ounces the year before, amid weak demand from Asia and India, a large buyer of silver for making jewelry. The report indicated, however, that demand continues to exceed mine production. That means warehouse inventories are continuing to erode, albeit more slowly. But market participants were concerned demand may fall further, despite a slow recovery of economic conditions in Asia, if prices rise much past current levels. Silver for July delivery fell 10 cents to $5.21 an ounce. Wheat and soybean futures fell sharply on the Chicago Board of Trade amid forecasts for dry weather next week in Midwestern growing areas, which should allow farmers to speed up field work. Farmers are expected to plant record soybean acreage this spring, boosting the chances for another bin-busting harvest this fall. That would come on top of bumper harvests in Brazil and Argentina and add to ample world supplies. Soybeans also retreated after a National Oilseed Processors Association report showed an anemic pace for crushing soybeans into oil and meal. Wheat futures also faced continued pressure from the early harvesting of winter wheat crops, where farmers were reporting above-average yields. July wheat fell 4 cents to $2.52 1/4 a bushel; July soybeans fell 6 1/4 cents to $4.61 3/4 a bushel. Crude oil futures advanced a second day on the New York Mercantile Exchange amid prospects for a delay in Iraqi oil exports. The United Nations had been mired in debate over whether to approve another round of an oil-for-aid program for Iraq. After trading had ended, the U.N. agency voted to extend the program another six months. Still, Iraq has indicated it may delay loading new cargoes until at least June 10. Iraq is operating under an embargo imposed after its 1990 invasion of Kuwait but is allowed to export 1.9 million barrels of oil, equal to $5.2 billion, over six months to buy food and medical supplies. Market participants had worried the current wrangling could take weeks, effectively keep oil off the market at a time when other major oil producers are cutting back output. June crude rose 34 cents to $17.41 a barrel; June heating oil rose 0.76 cent to 40.55 cents a gallon; June unleaded gasoline rose 0.92 cent to 50.40 cents a gallon. -=-=- 