* Wheat futures up 1% month-ending positioning
* Storms hit Australia's wheat harvest
* Drought in Brazil looms over soybean production
(New throughout, updates prices, market activity, U.S. trading comments; new byline, new bullets and headline, changes dateline, previous PARIS/SINGAPORE)
CHICAGO, Nov 29 (Reuters) - Chicago wheat futures climbed 1% higher on Wednesday, extending gains from the previous session as traders cover their short positions ahead of month-end and first notice day for the spot December contract.
Soybean futures retreated early before recovering as traders accessed the adverse crop weather in Brazil. Corn was up slightly in early-session trading after some contract earlier hit life-of-contract lows.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 5-3/4 cents at $5.77-3/4 a bushel, as of 1645 GMT.
"We got month-ending positioning taking place. That's a big factor in the market today," said Karl Setzer, partner at Consus Ag Consulting. "A little bit of short-covering in the wheat contract which has been heavily beat down."
Wheat moved higher on technical bounce after the most-active March contract set a life-of-contract low on Monday. Some traders expect heavy deliveries against the CBOT December contract for first notice day on Thursday.
Heavy rain sweeping through southeastern Australia has damaged wheat crops and supported the market. The downpours potentially could shrink production by more than 100,000 tons and turning up to 1 million tons of milling wheat into lower-quality feed grain, analysts said.
Meanwhile, CBOT corn was up 1-1/2 cents at $4.75 a bushel and soybeans was up 3/4 of a cent at $13.45-3/4 a bushel as drought in Brazil loomed over production in the top-exporting nation, despite recent rains and rain in the forecast.
"Brazil isn't running out of soybeans," Setzer said, noting that the crop in Brazil is still likely will be larger than last year and production in Argentina may offset Brazil's potential crop production troubles. "It's just kind of a risk-off type day more than anything."
In addition, there talk on Tuesday of China buying more soybeans from private U.S. exporters, Setzer said. That ultimately did not materialize on Wednesday, putting pressure on the market, he said. (Additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris Editing by Marguerita Choy)