Needing a birdie at the final hole to stay in the Turespana Masters-Balearic Open at Santa Ponsa, Ballesteros had a double-bogey six for a 76 and seven over par total of 151.
"Just a bad day - one of those that happens," said the 41-year-old, who has not won a tournament for three years
It still lookslikely that a Spanish will win the tournamnet on Sunday. Santiago Luna and Miguel Angel Jimenez lead on seven under, with their compatriots Jose Rivero and Miguel Angel Martin two strokes behind.
The pre-tournament favourite, Bernhard Langer, who is still troubled by a neck strain, is eight back on one over, while Andrew McKenna and John Hawksworth, joint third overnight, both collapsed to 78s and fell nine adrift.
Langer partnered Ballesteros and said: "It's hard work for him. In the first round he hit some really crooked ones."
A 25-foot eagle putt on the long 13th gave last year's Ryder Cup captain a chance of qualifying, but he was bunkered at the short 15th and bogeyed, then sent a pitch from just short of the 18th green into a guarding bunker.
Luna, who shared the first day pace with Martin, added a 70 to his 67 in the windier conditions, but Jimenez, right-hand man to Ballesteros against the Americans last September, claimed seven birdies to go joint top. The last of them came with a superb two-iron to nine feet on the 437-yard ninth.
Martin chipped in at the last for a 72 alongside Rivero, whose 70 contained two bogey sixes, but also four birdies.Reuse content