GRAINS-Corn jumps more than 1 percent in short-covering bounce

* Funds cover short positions in corn after recent drop

* Wheat bounces from one-month low, soybeans retreat

* Market monitoring South America weather, weak dollar (Rewrites throughout, adds quote, updates prices; changes byline, dateline, previous PARIS/SINGAPORE)

CHICAGO, Jan 17 (Reuters) - U.S. corn futures climbed more than 1 percent on Wednesday on short-covering and technical buying after recent contract lows and on expectations that a weaker U.S. dollar may revive slumping export demand.

Wheat also rose about 1 percent after hitting one-month lows in the previous session, while soybeans eased after two sessions of gains.

"This is textbook short covering from the funds at a time of year when they aren't really used to being very short corn," said Ted Seifried, analyst with Zaner Ag Hedge.

Corn fell in the wake of Friday's bearish U.S. Department of Agriculture crop report showing massive stocks and a bigger-than-expected U.S. harvest. But failure to extend those losses since then prompted speculation that a near-term low had been achieved.

Chicago Board of Trade March corn jumped 4-1/4 cents, or 1.2 percent, to $3.52-1/2 a bushel by 11:57 a.m. CST (1757 GMT). After more than a month of mostly range-bound trade, the contract was on pace for its largest percentage gain since mid-November.

Still, March corn faced chart resistance at its 50-day moving average, a technical level it has largely failed to breach since late October.

Reports that wet weather in parts of Brazil could stall the soybean harvest and delay planting of the country's large second crop of corn underpinned futures.

Grains also drew support from a recent weakening of the U.S. dollar, which makes dollar-denominated commodity exports more affordable for those holding other currencies. The dollar index stabilized on Wednesday after sinking to a three-year low on Monday.

CBOT March soft red winter wheat gained 4 cents, or 1 percent, to $4.20-1/2 a bushel, rebounding after three sessions of declines. March soybeans fell 1-1/2 cents to $9.66-1/2 a bushel, the first lower day in three.

The soybean market remained underpinned by dry weather in Argentina, although favourable growing conditions in Brazil have boosted hopes of a bumper crop there.

Traders were evaluating rain forecasts developing for Argentina, with projections for some light showers in the week ahead in the Pampas farm belt. (Additional reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris; Editing by David Evans and James Dalgleish)