GRAINS-Corn, soybeans rebound after sell-off as weather risks weighed

* New-crop corn, soybean futures fell nearly 7% on Thursday

* Improved weather outlook, broad investor selling fuelled slide

* Persisting drought risks, technical buying support bounce

* Wheat also rebounds after being pressured by harvest (Updates throughout, changes byline/dateline)

PARIS/SINGAPORE, June 18 (Reuters) - Chicago corn and soybean futures rose sharply on Friday as persistent drought risks for U.S. crops and bargain-buying helped prices recoup some of their spectacular losses from the previous day.

Wheat also bounced after sliding to a two-month low on Thursday when supply pressure from the start of the U.S. harvest added to spillover from a broad rout in commodities.

The Chicago Board of Trade (CBOT) December corn added 2.4% to $5.45-1/4 a bushel as of 1017 GMT, while November soybeans were up 2.8% at $12.94-1/4 a bushel.

The new-crop benchmarks each shed nearly 7% on Thursday. Forecasts pointing to rain relief and moderate heat in the U.S. Midwest had exacerbated selling after the Federal Reserve signaled it might raise interest rates at a much faster pace.

Commodity funds were net sellers of CBOT corn, soybean, soyoil, wheat and soymeal futures contracts on Thursday, traders said.

“Fund positioning is now below last year’s and it’s difficult to see where selling will come from here unless weather sees a real improvement, acreage rises and corn conditions stabilize through pollination,” Michael Magdovitz, commodity analyst with Rabobank, said.

Weather forecasts for U.S. crop belts were also looking slightly drier than a day earlier, underscoring continuing risks of drought stress to crops at a time when markets are looking to large U.S. corn and soybean harvests to ease supply tensions, he said.

Soybeans and by-product soyoil have been particularly volatile, swayed by uncertainty over U.S. biofuel policy and edible oil supply and demand in Asia.

Palm oil futures turned higher on Friday after hitting their lowest since February.

CBOT July wheat was up 2.3% at $6.53-1/2 a bushel after losing 3.6% on Thursday.

The start of the U.S. winter wheat harvest and good crop conditions across Europe have weighed on wheat markets, although drought stress for U.S. spring wheat has lent some support. (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; additional reporting by Colin Packham in Canberra; Editing by Aditya Soni, Robert Birsel)