* Traders adjust positions ahead of USDA report due Friday

* US weather looks more favorable for corn, soy -analysts

* USDA to issue weekly grain export sales data Thursday

CHICAGO, Aug 9 (Reuters) - Chicago Board of Trade soybean futures rose on Wednesday as the market recovered from a fall in the previous session that saw prices hit their lowest in more than a month.

Corn and wheat futures declined.

Traders in the agricultural markets adjusted positions before the U.S. Department of Agriculture issues a monthly crop report on Friday. Analysts on average project the World Agricultural Supply and Demand Estimates will trim the government's forecast for U.S. corn and soybean production and yields, a Reuters poll shows.

The U.S. corn harvest could still be the second-largest on record, with weather conditions turning more favorable.

"Nobody wants to really put on much of a position ahead of the report," said Sherman Newlin, an Illinois farmer and analyst with Risk Management Commodities.

The most-active soybean futures contact advanced 3-1/2 cents to $13.09-1/2 a bushel by 11:50 a.m. CDT (1650 GMT) after falling on Tuesday to its lowest price since June 30.

Most-active corn futures slumped 3-3/4 cents to $4.95 a bushel, hovering near a three-week low reached on Monday. Wheat fell 16 cents to $6.40-1/4 a bushel at the CBOT.

The losses in wheat helped drag down corn futures, traders said.

"Once again, the corn market is caught between weakness in the wheat market and the strength in the soybean market," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.

"The weather has certainly improved with lower temperatures and widespread rainfall in the forecast, but positioning and evening up ahead of Friday's WASDE report may dominate the trade for a couple of days."

The USDA said on Wednesday that exporters sold 251,000 metric tons of U.S. soybeans to China and on Thursday is slated to issue weekly U.S. export sales data.

In India, the government will release up to 5 million metric tons of wheat from stocks to counter surging prices. Traders are watching to see whether India may also import wheat.

(Reporting by Tom Polansek in Chicago; Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Kirsten Donovan)