GRAINS-U.S. wheat falls on weak exports, set for weekly gain

* Brisk demand for EU wheat but U.S. exports weaken

* Falling stocks in South America underpin corn

* Soy slips back from prior session's 3-week high

(Adds quotes, updates prices, previous New Delhi)

LONDON, Nov 30 (Reuters) - Chicago wheat futures fell on Friday with weak U.S. exports sparking a setback after a run-up in prices earlier in the week while corn and soybeans were also lower.

Dealers noted that wheat remained on course for a gain on the week of around two percent.

"Some profit taking and poor export numbers released by the USDA set the bearish trend for wheat which had been posting continuous gains this week," said Lynette Tan, an analyst with Phillip Futures in Singapore.

U.S. export sales of wheat and corn were the smallest in three weeks last week, with each missing traders' expectations, U.S. Agriculture Department (USDA) data showed on Thursday.

"A higher figure had been anticipated given the dwindling supply in the Black Sea region," Commerzbank said in a market note on Friday.

"The increased price level is clearly leaving its mark on demand for US wheat, though the same cannot be said of EU wheat, which actually saw exports increase this week to 438,000 tonnes," the report added.

The European Union cleared 438,000 tonnes of wheat export licences this week, keeping the volume this season well above the year-earlier level.

This year drought hit the Black Sea countries, which normally produce about 10 percent of the world's wheat, forcing them to slash their harvest and exports.

Chicago Board Of Trade December wheat dropped 0.9 percent to $8.61-3/4 by 1155 GMT, after falling 0.7 percent in the previous session. The most active March wheat also fell 0.6 percent to $8.80 a bushel.

BRISK EU EXPORTS

Prices in Europe were also lower with January milling wheat on the Paris futures market down 1.00 euro or 0.4 percent at 272.75 euros a tonne.

Dealers said brisk export demand helped to underpin prices which on Thursday had touched a two-week peak of 277.00 euros, close to a contract high of 279.25 euros hit three weeks ago.

Corn prices were also weaker, also weighed by lower than expected weekly U.S. export sales, with the market remained underpinned by falling stocks in South America.

December CBOT corn fell 0.2 percent to $7.49-3/4 a bushel, after shedding 5-1/4 cents on Thursday, its first drop in four sessions.

Soybean fell after registering a three-week high in the previous session, buoyed by strong U.S. soy products exports and forecasts of wet weather in Argentina.

January soybeans fell 0.6 percent to $14.38-3/4 per bushel.

"Improved production in the U.S. and soymeal sales by China may have smoothed out some of the extreme tightness, but we are far from comfortable with the fundamental situation at present," Macquarie said in a market note.

"Relatively small reductions to South America production will have a meaningful impact on the required price level of soybeans," the report added.

(Additional reporting by Mayank Bhardwaj in New Delhi and Gus Trompiz in Paris; Editing by William Hardy)