GRAINS-U.S. soy rises after worst losses in 6 months

* Soy up after 5.5 pct slide on weak oil

* Corn, wheat also rise in cautious trade

* Grain markets likely to shed gains on economic concerns

* Perfect growing conditions to weigh on corn, soy (Adds details)

SINGAPORE, July 8 - U.S. soybean futures rose on Wednesday after dropping 5.5 percent in the previous session to a more than seven-week low, in sympathy with crude oil and on favourable crop conditions. Corn and wheat also rose, but analysts said the market was unlikely to sustain gains as weak stock markets and crude oil prices will weigh on grains.

"The market is simply making a rebound after yesterday's sharp sell-off," said Lim Myung-im, a trader at Samsung Futures in Seoul.

"In the absence of major fundamental factors, grains markets are likely to turn lower again and closely follow external developments including G8 summit, major corporate earnings and stock markets."

Japan's Nikkei average and oil prices hit six-week lows as investors pulled funds out of bets on the global economy's recovery and favoured safe havens, such as the U.S. dollar and government bonds.

Oil fell towards $62, on course for its sixth consecutive fall and longest losing streak since mid-December, after data showed larger-than-expected builds in U.S. products stocks, reflecting little sign of a recovery in oil demand.

Oil often influences prices of corn and soybeans for their use in making renewable fuels.

Chicago Board of Trade July soy rose 0.6 percent, or 7 cents, to $11.40-½ a bushel by 0635 GMT, after dropping 66-½ cents on Tuesday in the biggest single-day percentage decline since Jan. 12.

July corn rose 1.3 percent to $3.40 a bushel, while July wheat gained 0.4 percent to $4.85-½ a bushel.

China's Dalian soybean futures, Asia's most active grains market, fell nearly 3 percent, tracking CBOT's losses in the previous session.

The country's soybean industry has been speculating on the government's plan to release its reserves after its stockpiling campaign ended last week, a factor that will weigh on the domestic market.

Concerns that the Commodities Futures Trading Commission may consider adopting some position limits for index funds to cut down on market speculation also contributed to the weakness in CBOT grain prices on Tuesday.

The U.S. Agriculture Department said the soybean crop was rated 66 percent good to excellent as of July 5, down from 68 percent a week earlier. A year ago, the soybean crop was rated 59 percent good to excellent.

It rated the U.S. corn crop as 71 percent good to excellent, down from 72 percent a week earlier, but above the year-ago level of 62 percent. PRICES AT 0635 GMT Contract Last Change Pct chg Day ago pct MA 30 RSI CBOT wheat 485.50 1.75 +0.36% -2.95% 575.23 23 CBOT corn 340.00 4.50 +1.34% -0.95% 402.71 25 CBOT soy 1140.50 7.00 +0.62% -4.96% 1205.87 41 CBOT rice $12.45 $0.00 +0.00% -2.54% $12.42 51 WTI crude $61.92 -$1.01 -1.60% -3.33% $68.44 37 Currencies Euro/dlr $1.387 -$0.005 -0.37% -0.76% USD/AUD 0.784 -0.005 -0.68% -1.66% Front month contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight