SINGAPORE, July 10 (Reuters) - Chicago corn and soybean futures ticked higher on Monday as the markets recovered from previous session's losses, although gains were limited due to expectations of further rains in the U.S. Midwest.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.6% at $4.97-1/2 a bushel, as of 0039 GMT, and soybeans rose 0.5% to $13.23-3/4 a bushel. Wheat fell 0.8% to $6.44-1/2 a bushel.

* Grain traders are monitoring shifts in weather as more U.S. corn enters its critical pollination stage. Two-thirds of corn and 60% of soybeans were affected by drought, as of July 4, according to the U.S. Department of Agriculture (USDA).

* Normal to above-normal precipitation was forecast for the central and southern Midwest in the six- to 15-day period, and the northwest corner of the region was seen remaining largely dry, according to Commodity Weather Group.

* Weekly USDA corn export data showed sales in line with trade expectations last week, while wheat sales and new-crop soybean sales topped estimates.

* Additionally, the USDA on Friday confirmed that Mexico purchased 180,000 metric tons of old- and new-crop U.S. corn.

* Traders are awaiting a monthly USDA supply-and-demand report on Wednesday, with cuts to U.S. corn and soybean yield estimates possible.

* Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week ended July 3, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

* MSCI's global equity index ended Friday's session virtually unchanged while the dollar was lower as government data showed that U.S. jobs growth slowed more than expected in June, easing worries about the outlook for Federal Reserve rate hikes.

DATA/EVENTS (GMT) 0130 China PPI, CPI YY June (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)