Updates throughout with European trading

By Naveen Thukral and Gus Trompiz

SINGAPORE/PARIS, June 1 (Reuters) - Chicago soybean and wheat regained ground on Monday as renewed fighting in the Middle East sent oil prices higher, but corn set another six-week low as improved U.S. crop weather weighed.

Oil prices rose around 3% after Iran and the U.S. traded strikes and Israel ordered troops to move further into Lebanon, raising doubts over peace talks to end the Middle East conflict. O/R

Grain markets have tracked fluctuations in crude oil during the conflict, partly reflecting the use of crops in biofuels.

"We have higher oil today, which is directly supporting the grain and oilseed markets," said one trader in Singapore. "We will see more grains and oilseeds being diverted to make biofuels if energy supplies continue to remain tight."

Grains had retreated last week as signs of progress towards an extended U.S.-Iranian ceasefire, together with improved weather for U.S. crops, encouraged end-of-month profit-taking.

"Prices are recovering some war-risk premium this morning, as progress on a ceasefire still remains elusive," CM Navigator analyst Donatas Jankauskas said.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.2% at $11.89-1/2 a bushel by 1136 GMT, while CBOT wheat Wv1 added 0.4% to $6.12-3/4 a bushel to move away from Friday's three-week low.

However, CBOT corn Cv1 was down 0.2% at $4.45-3/4 a bushel after setting a six-week low for the second session in a row.

Drier weather in the U.S. Midwest has eased concern about planting delays, while rain in the U.S. Plains has tempered drought fears.

Traders are awaiting the U.S. Department of Agriculture's weekly crop progress report after Monday's close for an update on field conditions.

A rally in wheat supported by drought damage to U.S. winter crops has faded given favourable harvest prospects elsewhere in the Northern Hemisphere and uncompetitive U.S. export prices.

Agriculture consultancy Sovecon last week raised its forecast for Russia's 2026 wheat crop, citing favourable soil moisture.

Prices at 1136 GMT
	Last	Change	Pct Move
CBOT wheat Wv1	612.75	2.25	0.37
CBOT corn Cv1	445.75	-1.00	-0.22
CBOT soy Sv1	1189.50	2.75	0.23
Paris wheat BL2c1	206.50	-1.00	-0.48
Paris maize EMAc1	218.25	-17.75	-7.52
Paris rapeseed COMc1	523.25	-1.00	-0.19
WTI crude oil CLc1	90.55	3.19	3.65
Euro/dollar EUR=	1.16	0.00	-0.14
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton