* Soybeans decline 1%

* Northern Brazil to see downpours, easing heat

* Corn and wheat up on short covering

(New throughout, updates prices, market activity, US trading comments; changes dateline, previous PARIS/CANBERRA)

CHICAGO, Dec 1 (Reuters) - Chicago soybean futures fell on Friday as the weather forecast in drought-stricken northern Brazil promised much-needed rain for producers who are dealing with the prospect of low yields and damaged crops.

Corn and wheat both were up in early-session trading as traders continued to cover short positions in both crop futures.

The most active soybean contract on the Chicago Board of Trade (CBOT) was down 13-3/4 cents at $13.29 a bushel by 1715 GMT. Forecast showers and easing heat in northern Brazil could help crops next week in the world's biggest soybean exporting nation.

"It looks like the weather patterns have indeed turned around," said Tom Fritz, a partner with brokerage EFG Group in Chicago.

Crop watchers have been paring their harvest forecasts for Brazil, although most still expect larger year-on-year production.

Consultancy Patria Agronegocios said Brazil would produce 150.67 million metric tons of soybeans, below last season's 154.10 million, due to drought in key producer states in the first projection seen by Reuters predicting an annual decline.

Commodity brokerage StoneX cut its forecast to 161.9 million tons, from 165.03 million previously.

Another round of private U.S. soybean sales totalling 330,000 tons confirmed by the U.S. Department of Agriculture to China and unknown destinations helped support soybeans despite the decline in price.

The most- active CBOT wheat contract was up 5 cents at $6.03 a bushel while corn was up 2-1/2 cents at $4.85-1/4 a bushel.

Following recent contract lows and weather disruption to Black Sea shipments, improved export prospects supported gains this week in the wheat market in which speculators have built a large short position. Export demand has also underpinned the corn market, which has seen a fair bit of short covering over the last few days.

"Today, being Friday, the markets are just taking a little bit of a breather, reassessing," EFG's Fritz said. "Do we have the need for further short covering?" (Reporting by Brendan O'Brien; Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; editing by Grant McCool)