GRAINS-Soybeans edge lower as Middle East tensions in focus

BEIJING/PARIS, June 23 (Reuters) - Chicago soybean futures edged lower on Monday, unravelling gains after soyoil prices followed crude oil higher on concerns U.S. strikes on Iranian nuclear facilities could lead to supply disruption.

The most-active soybean contract Sv1 was down 0.2% by 1128 GMT to $10.58-3/4 per bushel. Soyoil BOcv1 climbed 0.8% to 54.9 cents per pound.

Both contracts were higher in earlier trade as oil prices surged after the U.S. targeted Iranian nuclear sites over the weekend. Soyoil is closely tied to crude prices as it is used in biofuel as a substitute for fossil fuel.

At the same time, U.S. soybean prices are under pressure from weak demand and ample global supplies.

"Fundamentally, not much has changed since the end of the week," said Andrew Whitelaw, agricultural consultant at Episode 3. "Speculators pulled back their net short positions, which is not surprising, considering the uncertainty about the attacks on Iran by Israel, and now the U.S.."

Traders and analysts are monitoring for Iran's response to the U.S. strikes.

"The concern will now be about retaliation from Iran, and its proxies in the region. If there are concerns to supply chains, this could cause the market to rally further as crude oil prices rise," Whitelaw added.

In the world's biggest buyer China, soybean imports from Brazil surged 37.5% last month from a year earlier, data showed on Friday, as buyers scooped up South America's bumper crop. Supplies from the United States also rose 28.3%.

Corn Cv1 slipped 1.2% to $4.23-3/4 per bushel, marking its lowest level since mid-November. Favourable weather across much of the U.S. Midwest has improved crop prospects, putting pressure on prices.

Wheat Wv1 was 0.3% weaker at $5.82 a bushel, after last week's strong rally and pressured by the accelerating U.S. winter wheat harvest.

Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soyoil and soybean futures contracts on Friday and net buyers of soymeal futures, traders said. COMFUND/CBT