GRAINS-U.S. wheat edges up on softer dollar, crop concerns

* EU wheat crop outlook dimmed by difficult planting period

* Rise in euro keeps a lid on European wheat prices

* Argentina rains help to underpin soybean prices

(Adds quotes, updates prices)

LONDON, Dec 4 (Reuters) - U.S. wheat prices edged up on Tuesday, supported by a weaker dollar and crop concerns in Europe and South America, while corn was little changed and soybeans marginally lower.

Jaime Nolan-Miralles, commodity risk manager with INTL FCStone, said the French winter wheat crop still had time to recover from a difficult and dry planting period but the outlook for the UK crop was less optimistic and there were continued rains and quality concerns in Argentina.

"Throw in the seasonal upward trend that awaits wheat markets from Dec through Feb and bulls appear to have all they need to sustain momentum," he said.

March wheat on the Chicago Board of Trade stood 3/4 cent or 0.1 percent higher at $8.61-1/2 a bushel at 1233 GMT while January milling wheat in Paris was off 0.25 euros or 0.1 percent to 269.00 euros a tonne.

Strength in the euro, which hit a fresh six-week high against the dollar, kept a lid on prices in Europe but bullish fundamentals were helping keep the market near contract highs.

"We're hesitating between continuing the price pullback and consolidating," a Paris futures dealer said.

AUSTRALIA FORECAST CUT

Australia lowered its forecast for wheat production this year, but futures prices were unaffected as the market had already factored in the cut, traders said.

The Australian forecast for the 2012/13 marketing year was lowered from an estimate of 22.54 million tonnes in September and follows a record harvest of 29.5 million tonnes last year, data from the government's commodities forecaster showed on Tuesday.

Wheat production was curbed by poor rainfall on the east coast and Western Australia, the largest wheat producing areas.

Soybeans turned lower but remained underpinned by concerns about overly wet weather in Argentina and persistently dry conditions in southern areas of Brazil.

"Concerns over production in Argentina particularly have supported the oilseed market in the last couple of days, and that continues," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.

CBOT January soybeans eased 1-3/4 cents or 0.1 percent to $14.52 a bushel.

Soybeans have gained support from forecasts of rain, which is expected to hit Argentina's grains belt this week and sustain the floods that have fanned global supply worries by swamping and blocking access to key soy, corn and wheat areas.

Major soybean producer Brazil, however, is likely to see better weather. A cold front off the southeast coast should bring rain to top soy-growing state Mato Grosso this week, with isolated showers in the south helping farmers finish planting what should be a record crop, analysts said.

CBOT corn prices were little changed with March up 1/2 cent or 0.1 percent at $7.55-1/4 a bushel.

(Additional reporting by Colin Packham in Sydney; editing by Keiron Henderson)