* Soybeans edge up after earlier contract lows
* China due to levy retaliatory duty on U.S. soy from Friday
* Impact of tariffs seen as priced in for now
* Wheat eases after rally on European harvest worries
(Updates with European trading, changes byline/dateline) PARIS/SINGAPORE, July 6 (Reuters) - Chicago soybeans steadied on Friday, after contract lows earlier in the session, with investors watching to see how tit-for-tat tariffs between the United States and China would affect global trade in the oilseed. Wheat eased after two sessions of strong gains fueled by deteriorating harvest prospects in Europe. Corn edged lower. An escalating trade dispute between Washington and Beijing has hung over the soybean market, in which the two countries loom large as respectively the world's largest producer and importer. U.S. tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday, and Beijing said it would retaliate with planned duties, which cover soybeans. The extra 25 percent tariff on U.S. soybeans is expected to curb Chinese demand for U.S. shipments and shift some sales to Brazil, a prospect that has contributed to a five-year high in the spread between U.S. and Brazilian prices.
"The market is a little fatigued at this stage having largely priced in these tariffs, and is trying to find direction," Michael Magdovitz, commodities analyst with Rabobank, said of soybeans. 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 expected onus on Brazil to make up for reduced U.S. shipments to China may lead the world's largest soybean exporter to import some supplies from the United States this year to satisfy demand from Brazilian processors, an executive of exporters association Anec said on Thursday. Brazil has also been grappling with severe logistical problems and Rabobank's Magdovitz said this could hamper not only export shipments but also deliveries of fertilizer to farmers, potentially curbing the next Brazilian soybean harvest. Chicago Board of Trade November soybeans were up 0.2 percent at $8.57-1/2 a bushel at 1147 GMT, after earlier setting a contract low of $8.53. CBOT wheat dipped 0.5 percent to $5.02-3/4 a bushel, after climbing 5 percent in the last two sessions, while corn inched down 0.1 percent to $3.64-1/4 a bushel. A forecast on Thursday from a German farming association for a 15 percent drop in the country's wheat crop this year due to hot, dry weather fanned concern about a worsening harvest outlook across Europe.
Corn and soybean prices remained capped by favorable U.S. growing conditions so far, but analysts said current hot weather could raise risks as corn enters pollination during July.
Prices at 1147 GMT
Last Chang Pct End Ytd Pct e Move 2017 Move CBOT wheat 502.75 -2.75 -0.54 427.00 17.74 CBOT corn 364.25 -0.25 -0.07 350.75 3.85 CBOT soy 857.50 1.75 0.20 961.75 -10.84 Paris wheat Dec 188.50 -1.25 -0.66 170.00 10.88 Paris maize Aug 170.25 -1.75 -1.02 167.75 1.49 Paris rape Aug 360.75 -1.75 -0.48 349.00 3.37 WTI crude oil 72.35 -0.59 -0.81 60.42 19.75 Euro/dlr 1.17 0.00 0.23
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Mark Potter)