GRAINS-Soybeans slide 1 pct on improved crop ratings, milder weather

* Soybeans fall after USDA raises crop ratings

* Corn down as ratings drop offset by milder weather

* CBOT wheat flat; world supply tempers U.S. crop woes

(Updates with European trading, changes byline/dateline) PARIS/SYDNEY, Aug 1 (Reuters) - Chicago soybeans fell more than 1 percent on Tuesday after an unexpected improvement in the condition of U.S. crops eased concerns about yield losses following recent hot, dry weather. A milder weather outlook for U.S. growing belts further weighed on soybeans and also helped to push corn futures slightly lower, despite a decline in the U.S. Department of Agriculture's (USDA) weekly crop ratings for the cereal. Chicago wheat was almost unchanged as the market set a latest deterioration in weather-battered U.S. spring wheat against sizeable global supplies, including a bumper Russian harvest. The most active soybean futures on the Chicago Board Of Trade were down 1.3 percent at $9.93-3/4 a bushel at 1128 GMT, having earlier dipped to $9.91-1/2, its lowest since July 26. In a weekly update issued after the market close on Monday, the USDA pegged 59 percent of the U.S. soybean crop at good to excellent, up 2 percent from last week and ahead of market expectations. "There was a bit of an improvement in soybeans and that explains why the market is softer today," Graydon Chong, senior commodities analyst at Rabobank, said. "The weather outlook for the next 10 days is a little cooler so that should help crops." However, analysts and traders remained concerned by dry conditions in the western part of the Midwest grain belt, and limited expected rainfall could leave soybean and corn markets prone to volatility in the run-up to monthly USDA crop forecasts on Aug. 10. "Soybeans remain at peril in what has already been a long, hot U.S. summer," Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia, said. The most active corn futures were down 0.7 percent at $3.82 a bushel. Corn was pegged at 61 percent good to excellent by the USDA, slightly below analysts' forecasts. The most active wheat futures were unchanged on the day at $4.74-1/2 a bushel, steadying after falling to a one-month low on Monday. The USDA said 31 percent of the U.S. spring crop was good to excellent, below an average market forecast of 33 percent. This helped to push the smaller Minneapolis spring wheat futures market higher on Tuesday. "Minneapolis wheat is still pretty well supported, but the market has priced in a lot of the damage," Rabobank's Chong said. "We're still focused on the U.S. but there are no real concerns in Europe, except some quality concerns in Germany although it's wait and see there." Russian agriculture consultancy IKAR on Tuesday increased its estimate for this year's wheat production in Russia to a record 74-77 million tonne range.

In western Europe, traders are waiting for a clearer picture of a rain-delayed German harvest, after better results than expected in France.

Prices at 1128 GMT

Last Change Pct End Ytd Pct Move 2016 Move CBOT wheat Mar 474.50 0.00 0.00 408.00 16.30 CBOT corn Mar 382.00 -2.75 -0.71 352.00 8.52 CBOT soy Mar 993.75 -13.50 -1.34 1004.00 -1.02 Paris wheat Dec 173.00 -0.75 -0.43 175.00 -1.14 Paris maize Nov 165.75 0.75 0.45 170.00 -2.50 Paris rape Nov 368.50 -3.25 -0.87 383.25 -3.85 WTI crude oil 49.96 -0.21 -0.42 53.72 -7.00 Euro/dlr 1.18 0.00 -0.20

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Colin Packham; Editing by Richard Pullin and Jane Merriman)