CHICAGO, Jan 3 (Reuters) - Chicago Board of Trade soybean futures edged higher on Wednesday, after favorable rains in dry areas of top-exporter Brazil sent the market to its lowest levels since June.

Corn futures also rose slightly after setting a contract low in earlier trading, while wheat extended losses to a one-month low.

Rains should continue to benefit soybean and corn crops in northern Brazil this week, analysts said, after hot, dry weather has prompted analysts to slash their production estimates.

"The better weather in South America and the lack of any new export sales announcements make it difficult to be a buyer in the short run," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.

CBOT March soybean futures were up 4-1/2 cents at $12.78 a bushel by 11:10 a.m. CST (1710 GMT) after the contract fell earlier to its lowest price since June 28 at $12.65-3/4.

The market saw some short-term buying after its sell-off, brokers said.

Higher supplies from other South American producers are likely to offset crop losses in Brazil, said Arlan Suderman, chief commodities economist for StoneX.

"Buyers have not yet seen the need to increase imports of U.S. soybeans to compensate for a 'short' Brazil crop," Suderman said.

"Part of the reason for that has been expectations for the Argentine crop to nearly double this year to close to 50 million metric tons, while increased production is also expected in Paraguay and Uruguay."

Strength in the U.S. dollar also hung over agricultural markets, analysts said. The dollar rose to a two-week high, underpinned by elevated U.S. Treasury yields.

CBOT March wheat dropped 6-1/4 cents to $6.00-1/2 a bushel and hit its lowest price since Dec. 1. March corn was up 1-1/4 cents at $4.65 a bushel after setting a contract low of $4.61-3/4.

Speculators have entered 2024 with some of their most bearish-ever views towards CBOT corn, but in past years, that positioning has rarely proven sustainable. (Reporting by Tom Polansek in Chicago; Additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris; Editing by Varun H K, Alexandra Hudson and David Evans)