GRAINS-Soy rises 2 pct on tight supply, strong oil

* Soy up for 4th day

* Corn extends gains on exports, slow farmer selling

* Grains also supported by strong oil, equities markets

(Updates after European markets open, previous SINGAPORE)

PARIS/SINGAPORE, July 30 - Chicago front-month soybean futures climbed more than 2 percent on Thursday, rising for the fourth straight day as fundamentals of tight U.S. supplies more than offset a sell-off in commodity markets.

Corn extended gains on prospects of strong exports and a slow farmer selling, while wheat rose on spillover strength from soy and corn.

In Europe grains markets were mostly unchanged as traders awaited the results of Egypt's wheat tender later in the day and the International Grains Council's crop and balance estimates.

Algeria's purchase of half a million tonnes of wheat, likely French, was seen as supportive but also indispensable for the EU grains balance at a time of good supplies.

"Tight soy supply is an underlying factor. Talking about corn and wheat, small traders are all in short right now and only the index traders are long, so it's kind of an oversold situation," said Genichiro Higaki, head of proprietary fund management team at Sumitomo Corp in Tokyo.

"It is quite natural short covering is coming in as we hear some bullish news (such as corn exports)."

U.S. farmers continued to delay sales awaiting the release of the USDA's August supply and demand report.

U.S. soybean supplies are projected to shrink their 32-year low of 110 million bushels at the end of August, thanks to China's voracious appetite.

China, the world's No.1 soy buyer, revised upward for the second time its estimate for the country's soybean imports in July to 4.82 million tonnes, exceeding the previous month's actual imports at a record 4.71 million tonnes.

U.S. soybeans for August delivery rose 24-1/4 cents to $10.81-3/4 per bushel by 1040 GMT, while the new-crop November contract was up 15.1/2 cents at $9.31-1/2 a bushel.

September corn rose 3-1/4 cents to $3.24 a bushel and September delivery wheat gained 4 cents to $5.15-1/2 a bushel.

CFTC HEARINGS

Traders also were busy digesting statements from hearings this week by the Commodity Futures Trading Commission or CFTC, the U.S. futures regulatory agency.

Analysts said any measures to tighten regulation of speculators in the commodity markets could restrict fund inflows.

"I don't think huge money is coming in from now on because of the possible restriction by the CFTC," said Higaki. "People are a little anxious to see the result of the discussions."

Support also came from external markets as oil rose above towards $64 a barrel, after sliding almost 6 percent the day before on data showing higher U.S. crude stocks, while the market kept an eye on measures by China to manage credit growth.

Oil often influences prices of corn and soybeans, key raw materials for alternative fuels, that compete with petroleum fuels.

World stocks also rose after China's central bank reaffirmed loose monetary policy and European corporate earnings cheered investors, while the dollar and government bond prices fell.

The European market was on hold in morning trade as traders waited to see whether Egypt would accept hefty and competitive offers for French wheat on Thursday or keep preferring cheaper Russian wheat as they did in their last tender.

U.S. wheat offers were also competitive, traders said.

"The results of Egypt's tender will be a good test of the attractiveness of Black Sea wheat compared to European origins," one trader said.

Benchmark November was unchanged at 133.75 euros a tonne.

Traders also reported some pressure from the incoming harvest that confirm very good yields although there were signs that the quality -- mainly specific weights -- in some fields was hurt by late showers.

Grains prices as of 1040 GMT Product Last Change Percent Move End 2008 Ytd Percent

move CBOT corn 324.00 +3.25 +1.01 407.00 -20.39 CBOT soy 1081.75 +24.25 +2.29 972.25 +11.26 CBOT wheat 515.50 +4.00 +0.78 610.75 -15.60 CBOT rice 13.82 +0.05 +0.36 15.34 -9.91 European wheat 133.75 unchgd 0 145.75 -8.23 US crude 64.04 Euro/dollar 1.4073 (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)