* Wheat, soy down on renewed liquidation
* U.S. July corn breaks 100-day moving average
* Coming up: Weekly U.S. CFTC commitments report (Updates with corn turning lower, adds analyst quote)
By Julie Ingwersen
CHICAGO, May 6 (Reuters) - Grains fell on Friday after a short-lived rebound from the biggest sell-off in commodities since 2008 a day earlier, with corn tumbling 2 percent as the pace of seeding this year's crop picked up.
Corn was also pressured by renewed long liquidation, with hedge funds and other financial investors holding a much larger long position in corn than they do in soybeans or wheat.
"There is some planting in the west but not in the east, and the weather outlooks aren't all that good, so frankly everyone is a bit puzzled about corn's decline or who's behind it," said analyst Shawn McCambridge of Prudential Bache Commodities.
Noted crop forecaster Informa Economics told clients on Friday that it had raised its estimate of U.S. corn plantings to 91.9 million acres from 91.758 million in March. The U.S. Department of Agriculture has forecast 92.2 million acres.
The sell-off on Thursday provided some investors with a buying opportunity.
INVESTORS RELOAD
"A lot of people will reload down at these levels. Whether it will work for them remains to be seen," said Tom Uhlmann, an independent trader at the Chicago Board of Trade.
Gold, as well as other commodities, got a boost after data showed that U.S. employment increased by more than expected in April, with employers adding jobs at the fastest monthly pace in five years.
The data helped dampen concerns by investors over the health of the world's biggest economy.
At the Chicago Board of Trade, corn posted the biggest decline, falling 2 percent.
As of 11:28 a.m. CDT (1628 GMT), July corn was off 16-3/4 cents at $6.92 a bushel. July wheat was down 3-1/2 cents at $7.50-1/2 per bushel. and July soybeans were down 6-1/4 cents at $13.15-1/2.
The tightest U.S. corn supply since the 1930s underpinned grains, along with concerns about flooding and planting delays diminishing prospects for the new U.S. corn crop.
"The fundamentals around grains and oilseeds complex haven't changed. It's very bullish for corn in the near term," said Adam Davis, senior grains trader at Merricks Capital in Melbourne, which invests in agricultural commodities.
"We still have the U.S. growing season to go through, corn plantings so far have not been ideal and there is reasonable value at these levels," Davis said.
Wheat drew underlying support from concerns about dry conditions in the southern U.S. Plains as well as France and Germany.
An annual crop tour of Kansas, the top U.S. winter wheat grower, on Thursday projected the state's winter wheat output at 256.7 million bushels, with an average yield of 37.4 bushels per acre. If realized, the wheat crop would be the smallest in Kansas since 1996. (Additional reporting by K.T. Arasu in Chicago, Bruce Hextall in Sydney and Svetlana Kovalyova in Milan; Editing by Alden Bentley and Lisa Shumaker)