PARIS/SINGAPORE, June 19 (Reuters) - Chicago corn, soybean and wheat futures were lower on Tuesday after multi-month highs last week as participants assessed chances for rain relief in dry Midwest crop belts.

Caution in wider financial markets as investors remained concerned about tepid economic growth in China encouraged grain markets to consolidate after last week's rally, traders said.

Grain markets were also awaiting weekly crop ratings from the U.S. Department of Agriculture (USDA) on Tuesday to gauge the impact of drought, as well as the possible release this week of U.S. targets for use of crop-based biofuels.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 1.3% at $5.89-1/2 a bushel at 1111 GMT, while CBOT soybeans were 0.9% lower at $13.29-3/4 a bushel. CBOT wheat lost 1.6% to $6.76-3/4 a bushel.

U.S. markets were closed on Monday for the Juneteenth holiday.

Expanding drought in the U.S. Midwest has raised doubts over the USDA's forecasts for record U.S. corn and soybean production this year.

Weather forecasts suggested greater chances of significant rain next week across the Midwest, with only light showers seen this week.

"The weather remains a key concern for traders," consultancy Agritel said in a note. "The hydric deficit remains in both the north of the EU and the U.S. Corn Belt."

Grain markets were watching to see how U.S. participants would react to latest weather projections during the daytime session in Chicago later on Tuesday, traders said.

In Europe, wheat futures on Euronext shed about 2%, pressured by expectations that cheaper Russian wheat would be used to cover most of a tender purchase by Algeria.

Large Russian exports have tempered worries over the possible breakdown of a Black Sea corridor agreement allowing shipments from war-torn Ukraine, which Moscow has repeatedly threatened to quit next month.

Weekend showers in France and widespread rain forecast this week have also eased concerns about dry conditions across northern Europe. (Reporting by Gus Trompiz in Paris and Matthew Chye in Singapore; Editing by Rashmi Aich and Jan Harvey)