GRAINS-U.S. grains off lows; weather, economy curb bounce

* Market sees some short-covering after multi-week lows

* Soybeans rise most, helped by more bullish fundamentals

* Favourable weather, economic doubts curb rebound

PARIS/SYDNEY, June 23 - Chicago grain and soybean futures moved higher on Tuesday after hitting multi-week lows, but gains were curbed by favourable weather conditions and subdued outside markets.

Soybeans led the way, adding 1 percent with support from tight old-crop supplies, to move away from a near one-month low, but corn was almost flat to stay close to a near two-month low.

Wheat on the Chicago Board of Trade inched up from six-week lows, while European wheat futures were narrowly mixed as the benchmark contract tested a major support level.

"Beans and corn have been pretty heavily sold over the last couple of sessions so we've seeing a bit of a short-covering session, though it won't last that long as weather conditions are quite favourable," said Doug Whitehead, a commodity strategist at Australia&New Zealand Banking Group Ltd.

Major crop-growing regions in the United States are set for warm, dry weather in the week ahead, which would boost young spring plantings and help the harvesting of winter wheat.

The rebound on grain markets was also dampened by investor doubts about a swift economic recovery, which pushed crude oil down further to $67 and limited European shares to modest gains after a slide in the previous session.

Wall Street saw its worst one-day loss in two months on Monday as the World Bank's downgrade to its global growth outlook encouraged investors to shift from equities and commodities towards safe-haven bets like the dollar and yen.

WARM WEATHER IN U.S.

CBOT soybeans for July delivery rose 1.13 percent to $11.64-1/2 per bushel by 1034 GMT, while July corn inched up 0.06 percent to $3.85-1/4 per bushel.

On wheat markets, CBOT July futures added 0.73 percent to $5.50 per bushel, while on Euronext the benchmark November contract edged down 0.18 percent to 142.00 euros a tonne in light volumes after closing at a two-month low on Monday.

Wheat prices were weighed down by the prospect of an accelerating U.S. harvest and positive feedback from initial barley harvesting in main European grain producer France, traders said.

After a wet weekend across the U.S. southern Plains, the next week to 10 days should be mostly clear, giving wheat farmers a big window to run combines across Kansas, the top U.S. wheat state.

European operators also stressed Euronext was testing a technical threshold at 142 euros, which if broken could push prices much lower.

"It's a very closely watched level," one trader said. "If there is downward pressure from the U.S. market, we could break it."

Grains prices as of 1034 GMT Product Last Change Percent Move End 2008 Ytd Percent

move CBOT corn 385.25 0.25 +0.06 407.00 -5.34 CBOT soy 1164.50 +13.00 +1.13 972.25 +19.77 CBOT wheat 550.00 4.00 +0.73 610.75 -9.95 CBOT rice 12.14 -0.05 -0.41 15.34 -20.86 European wheat 142.00 -0.25 -0.18 145.75 -2.57 US crude 67.17 Euro/dollar 1.3958 (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)