* Condition of U.S. corn worse-than-expected

* Soybeans little changed despite fall in condition of crops

* Wheat edges higher

SYDNEY, July 14 (Reuters) - U.S. corn futures edged lower as weather forecasts turned favourable, though losses were checked by a widely watched report that showed the condition of U.S. corn crop was worse than anticipated.

Soybeans were little changed despite a bullish U.S. Department of Agriculture condition report, while wheat firmed.

The most-active corn futures on the Chicago Board Of Trade were down 0.2% at $3.36-1/4 a bushel by 0335 GMT, having closed 2.4% lower in the previous session, when prices hit a June 30 low of $3.34-3/4 a bushel.

Referring to the expectations of favourable weather, Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia, said "The market is thus giving up on lower yield projections for the U.S. corn and taking prices down."

"The USDA's latest crop progress report, showing a two percentage point decline in U.S. corn crop conditions, might be enough to arrest the falls in early trade today."

The U.S. Department of Agriculture on Monday rated 69% of the country's corn crop in good-to-excellent condition, down 2 percentage points from a week ago. Analysts surveyed by Reuters on average had expected a decline of 1 percentage point.

The most-active soybean futures were unchanged at $8.75-1/4 a bushel, having closed down 1.7% on Monday.

The USDA rated 68% of the U.S. soybean crop in good-to-excellent condition, down 3 percentage points from 71% in the previous week.

The most-active wheat futures were up 0.2% at $5.26 a bushel, having closed down 1.7% on Monday.

Agriculture consultancy IKAR lowered its forecast for Russia's wheat crop to 76.5 million tonnes from 78 million previously.

Russian Agriculture Minister Dmitry Patrushev said the country plans to permanently use a grain export quota mechanism it introduced in April-June, but not in the July-December period, TASS news agency reported. (Reporting by Colin Packham; Editing by Shailesh Kuber)