Wheat fell 0.3 percent after a short-covering rally as prospects of higher global supplies weighed on the market. This week, Southern Brazilian and Argentine soy areas are in line for isolated showers that will bring relief to the newly planted crops but are not expected to break the cycle of hot weather that has been drying out the South American grain crop. This week, Brazil's southern soy region including No. 2 soy growing state Parana, No. 3 soy state Rio Grande do Sul and No. 5 soy state Mato Grosso will remain under the sway of "a dry air mass that will guarantee a very hot week for the south," local forecasters Somar said in a daily Brazil soy report on Monday. "If you look at the estimates, many have factored in almost best case record crop scenarios for South America, that's always a danger as you still have the full growing season to go through," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne. "It will be interesting to see how wheat behaves, given that funds are short in wheat. If we get a reasonable rally in beans and corn it will force a short covering in wheat." Chicago Board of Trade January soybeans rose 0.2 percent to $11.38-3/4 a bushel by 0346 GMT, while March corn fell three quarters of a cent to $6.00-1/4 a bushel. March wheat fell 0.3 percent to $5.98-1/4 a bushel. On Monday, higher than expected export volumes in inspection data from the US Department of Agriculture added further support for corn. US corn export inspections last week came in at 44 million bushels, up 19 percent from a week earlier and nearly 40 percent higher on the year. US soybean export inspections rose 4.4 percent to 31.3 million bushels, but the result was still down 45 percent from the same period last year. Sales of Brazil's 2011/12 soybean crop rose to 41 percent of the total expected production of 75.6 million tonnes, up from 40 percent a week earlier, analysts Celeres said. Analysts said buyers, including the top soy importer and second largest corn consumer, China, were not rushing to import grains and oilseeds even though there are concerns over production in South America. Instead China's State Grain Administration has confirmed it is stockpiling domestic corn from farmers in northeastern provinces from Dec. 14 to April 30, 2012, to shore up prices and refill depleted reserves. There was a lack of direction from outside markets which have dominated the prices of agricultural commodities. Asian stocks and the euro steadied on Tuesday, but sentiment remained fragile on concerns that efforts to contain the euro zone debt crisis were faltering and tougher rules to strengthen banks' capital would further undermine their profits.