Corn, soybean futures rebound as fears subside

After dropping 29 cents per bushel on panic selling Thursday, corn futures on the Chicago Board of Trade rebounded Friday with a 30-cent-per-bushel gain to $7.54.
Soybeans made up lost ground as well, rising 42 cents per bushel to $13.92.
Analyst Arlan Suderman of Farm Futures magazine said a rumor that a hedge fund controlled by investor George Soros had pulled out of grains caused panic to hit the trading floor in Chicago on Thursday.

"Those fears calmed overnight and end users began to come in to take advantage of the price break. Speculators observed the end user buying and began to shop for bargains themselves," Suderman said.
Traders continued to worry about corn planting, well behind schedule because of cool and wet weather in the Corn Belt. Not until Friday did soil temperatures in most of Iowa reach the requisite 50 degrees for proper corn seed germination.
Rain is forecast for most of Iowa this weekend but temperatures are expected to be in the 60s and 70s.

"There is no margin for error this year," Suderman said, referring to the need for bumper corn and soybean crops to relieve tight domestic stocks.
Market concerns about this year's crop were reflected Friday in the December corn contact, which prices this year's crop. On Friday, December corn rose 32 cents per bushel to $6.69.

(Source: http://www.desmoinesregister.com/article/20110430/BUSINESS/104300324/0/HALLOWEEN/?odyssey=nav|head)