BEIJING, June 16 (Reuters) - Chicago soyoil futures

surged to their highest level in nearly 18 months, buoyed by

higher-than-expected biofuel blending proposals and a rally in

crude oil prices amid escalating battle between Israel and Iran.

Soybeans edged higher on rising soyoil prices, though gains

were limited by weak demand and tariff uncertainties. Meanwhile,

wheat and corn futures retreated.

FUNDAMENTALS

* The most-active soyoil contract on the Chicago

Board of Trade jumped 4.78% at 53.03 cents per pound, as of 0034

GMT, its highest since December 20, 2023.

* Soybean inched up 0.02% to $10.70 per bushel. Wheat

dipped 0.55% to $5.40-6/8 a bushel, while corn

dropped 0.34% to $4.43 a bushel.

* Soyoil, a key feedstock for biodiesel fuel, found support

after the U.S. Environmental Protection Agency proposed last

Friday to increase the amount of biofuels that oil refiners must

blend into the nation's fuel mix over the next two years. The

proposal exceeded market expectations.

* Oil prices extended Friday's rally, as renewed strikes by

Israel and Iran over the weekend increased concerns that the

battle could widen across the region and significantly disrupt

oil exports from the Middle East.

* Higher oil prices tend to lift soyoil by making biodiesel

more attractive.

* Corn was pressured by benign weather forecasts for crop

development in the U.S. Corn Belt. Traders are awaiting updated

weekly crop ratings due later on Monday from the U.S. Department

of Agriculture.

* Wheat eased on seasonal pressure as the Northern

Hemisphere's winter wheat harvest gets underway.

* On the Chicago Board of Trade, commodity funds were net

buyers of soyoil, soybean, wheat and corn futures contracts on

Friday and net sellers of soymeal futures, traders said.

DATA/EVENTS (GMT)

0200 China Urban Investment (YTD) YY May

0200 China Retail Sales YY May

0200 China CPI MM NSA May

0630 India WPI Inflation YY May

1100 EU Reserve Assets Total May