* Soybeans rise after hitting contract lows
* U.S. implements duties on China imports, Beijing retaliates
* Impact of tariffs seen as priced in for now (Updates with U.S. trading; changes dateline; previous PARIS/SINGAPORE)
CHICAGO, July 6 (Reuters) - U.S. soybean futures rebounded on Friday, a day after nearing a decade low on concerns over the escalating trade dispute with China.
Prices recovered as the United States implemented tariffs on $34 billion in Chinese imports and Beijing said it would retaliate with planned duties, which cover soybeans. Traders had been bracing for the moves for weeks and said the market was due for a bounce.
The extra 25 percent tariff on U.S. soybeans is expected to curb Chinese demand for U.S. shipments further and shift more sales to Brazil, the world's top exporter. That prospect has contributed to a five-year high in the spread between U.S. and Brazilian prices.
Soybean futures have already dropped 15 percent over the past month on concerns about reduced demand from China, the world's top importer of the oilseed. The crop is U.S. farm country's most valuable agricultural export to China, worth more than $12 billion last year.
"I think most farmers are probably lying to you if they tell you they're not worried about the tariffs," said Trent Hall, who grows soybeans and corn in Wolcott, Indiana. "Everybody hopes they'll get resolved."
Nearby Chicago Board of Trade soybeans were up 28-1/4 cents at $8.63-3/4 a bushel by 12:40 p.m. CDT (1740 GMT). On Thursday, the contact fell to $8.34, the lowest price for a front-month contract since late 2008.
November soybeans, which represent the crop that will be harvested this fall, were up 30-1/2 cents at $8.86-1/4 a bushel, after earlier setting a contract low of $8.53-1/4.
Short-covering and profit-taking helped lift prices following the recent declines, traders said.
"The market is a little fatigued at this stage having largely priced in these tariffs, and is trying to find direction," said Michael Magdovitz, commodities analyst for Rabobank.
The trade fight has also roiled Chinese markets.
China's soymeal futures fell more than 2 percent on Friday afternoon before erasing most of the losses, amid initial confusion over whether China had implemented its retaliatory tariffs.
"The only good news is that it is now behind us and we can begin to look forward to whatever is next," Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa, said of the tariffs.
CBOT September wheat was up 6-1/2 cents at $5.12 a bushel, while December corn rose 7-1/4 cents to $3.71-3/4 a bushel. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Mark Potter and Dan Grebler)