* Weather in Australia, U.S., easing dollar all boost prices
* Offsets USDA's raised wheat, corn ending stock estimates
* Eyes on China policy after inflation hits 28-month top
(Updates with European trading, previous SINGAPORE)
By Manolo Serapio and Gus Trompiz
PARIS/SINGAPORE, Dec 13 (Reuters) - U.S. wheat futures crept higher on Monday, erasing earlier losses, as persistent concerns about the impact of weather on global supply outweighed increased stocks forecasts from the U.S. government.
U.S. corn and soybean futures also turned higher as a slight easing in the dollar gave support to U.S.-priced commodities.
Concerns that heavy rain in Australia and dry conditions in parts of the United States will squeeze supply of flour-grade wheat remained a focus for wheat markets, after a pullback on Friday when the U.S. Department of Agriculture raised its projections for U.S. and world wheat stocks.
"I think questions remain on the Australian crop and drier conditions in the U.S. and China. These weather concerns are probably overshadowing any announcements from the USDA," said Garry Booth, a trader at MF Global Australia.
Chicago Board of Trade wheat for March delivery rose 0.68 percent to $7.80-3/4 a bushel by 1304 GMT, off a low of $7.66-1/2. The contract fell 1.6 percent on Friday and marked a first weekly loss in three weeks in the wake of the USDA report.
Excessive rains in eastern Australia, the world's fourth-largest wheat exporter, had pushed CBOT wheat futures to four-month highs last week on worries that up to 60 percent of the country's wheat crop may have been reduced to animal feed.
"Even though in the last 48 hours or so it seems that there is a little more supply of better type grain than many had first anticipated and the weather outlook has improved marginally, markets remain nervous about any deterioration in weather here," said Booth.
In the United States, some winter-wheat growing areas remained parched while elsewhere a blizzard dumped thigh-deep snow on some areas of the upper U.S. Midwest over the weekend with a cold spell forecast through most of the week.
That could slow grain movement along the Illinois River, a major artery to barge grain to Midwest processors and flows into the Mississippi River where supplies are shipped to export terminals on the U.S. Gulf.
CHINA INFLATION POLICY
In Europe, milling wheat futures were narrowly mixed as the market weighed up the USDA, weather and economic news after setting a series of contract highs last week.
January milling wheat was down 0.10 percent at 241.75 euros a tonne, off a contract high of 244.00 euros seen on Friday.
"The market is in wait-and-see mood," a French broker said.
"The USDA report has fallen into the background," he added, stressing uncertainty over whether China would raise interest rates to tackle inflation and over what subsidies will be given to biofuels in a bill being discussed by the U.S. Congress.
CBOT March corn gained 0.87 percent to $5.79-1/4, recovering from an early low of $5.69. January soybeans rose 0.94 percent to $12.85, after falling as low as $12.57.
Despite its upward revision, the USDA's 832-million-bushel ending stock forecast for corn is the smallest carry-over inventory in 15 years and just one-half of the stockpile at the start of the year, with production of corn-based ethanol running at record levels.
Soybean futures were supported by the USDA raising its estimate of U.S. soybean exports for the fourth month in a row, led by sales to top importer China, even if this fell below some market expectations.
An easing in the U.S. dollar against a basket of currencies after earlier gains provided impetus for U.S. commodities by making them more attractive to holders of other currencies.
* Prices as of 1304 GMT Product Last Change Percent Move End 2009 Ytd Percent CBOT corn 565.25 5.00 +0.89 414.50 36.37 CBOT soybeans 1285.00 12.00 +0.94 1039.75 23.59 CBOT rice 13.99 0.06 +0.43 14.57 -4.02 Paris wheat 241.75 -0.25 -0.10 131.25 84.19 Paris maize 217.50 0.25 +0.12 135.00 61.11 Paris rapeseed 477.50 3.75 +0.79 287.50 66.09 Crude oil 89.04 1.25 +1.42 79.36 12.20 Euro/dlr 1.33 0.00 +0.24 1.43 -7.34 *Front month contracts. CBOT contracts in cents per bushel except rice which is in dollars per hundredweight. Paris wheat in euros a tonne. (Editing by James Jukwey)