GRAINS-U.S. corn slips to 3-week low on higher inventory

* U.S. corn inventory expected to rise 2.5 pct

* Poor weather, export demand help arrest fall in wheat

NEW DELHI, Dec 10 (Reuters) - Chicago corn futures eased to a three-week low on Monday, extending losses for the third straight session, crimped by sluggish exports from top supplier the United States and expectations of higher inventory forecast Lower export demand would help U.S. corn stocks jump by 2.5 percent to 663 million bushels, a Reuters poll showed, up from the USDA's forecast of 647 million bushels. But supplies would still be the tightest since the end of the 1995/96 crop year, due to the worst drought in more than 50 years limiting crop production across the U.S. Midwest. Global corn stocks are expected at 118.006 million tonnes, up from the 117.990 million tonnes the USDA forecast in November. The United States Department of Agriculture will release its monthly world supply and demand estimates on Tuesday. 1/8ID:ID:nL1E8N67J5 3/8 "Weak exports from the United States is the single most important reason behind the fall in corn, but there has been some profit-taking as well, ahead of the USDA data," said Luke Mathews, a commodities strategist at Commonwealth Bank of Australia in Sydney. Chicago Board Of Trade March corn fell 0.6 percent to $7.32-1/2 a bushel. Corn slipped 1.9 percent in the previous session, its biggest daily drop in almost a month. CBOT March wheat lost 0.4 percent to $8.57-1/2 a bushel. "The fall in wheat is not as steep as in corn and wheat is going to hold up due to poor crop conditions in the United States and some rise in export demand," Mathews said. Twenty-six percent of the new U.S. winter wheat crop was rated poor to very poor in late November by the USDA. Historic drought, coupled with record warm weather and high winds sweeping across the U.S. Plains, have left the new crop in the worst condition in decades. With no significant improvement soon, many farmers could give up on their wheat acres.

On Friday, European wheat prices firmed, supported by hefty export demand. CBOT January soybeans dropped 0.2 percent, to $14.69 a bushel.

Grains prices at 0520 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 857.50 -3.50 -0.41% -0.52% 873.50 41 CBOT corn 732.50 -4.75 -0.64% -2.53% 745.57 30 CBOT soy 1468.00 -4.25 -0.29% -1.56% 1461.69 55CBOT rice $15.25 -$0.02 -0.10% -0.39% $15.09 54WTI crude $86.20 $0.27 +0.31% +0.31% $86.87 40

Currencies

Euro/dlr $1.290 $0.001 +0.06% -0.21%USD/AUD 1.047 -0.002 -0.14% -0.18%

Most active contracts

Wheat,corn and soy US cents/bushel.Rice: USD per hundredweight

RSI 14, exponential