GRAINS-US wheat gains on strong exports; corn snaps 10-day slide

* Wheat on track for worst week since early Jan

* Corn headed for second straight weekly drop

* USDA reports higher weekly wheat sales, weak soy sales

* South American harvest dragging down soybean

NEW DELHI, Feb 15 (Reuters) - Chicago wheat rose on Friday on strong weekly export sales data and persistent harsh drought conditions in key farm states, while corn edged up after a ten-day slide. Wheat, which has also been supported by a surprise drop in the U.S. ending stocks forecast, has been unable to hold gains amid the declines in corn and is on track for its biggest weekly decline in six weeks. Corn is set for its second consecutive week of losses. Chicago Board of Trade March wheat gained 0.4 percent to $7.34-3/4 a bushel by 0509 GMT. It is down almost 3 percent for the week - its biggest drop since early January. "Last night's higher export numbers are supporting wheat and despite some snow and rains, concerns still remain about the impact of the dry winter in the U.S.," said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia. The U.S. Department of Agriculture (USDA) reported weekly export sales of wheat for the current and new marketing year at 706,300 tonnes, a seven-week high that topped trade expectations for 275,000 to 400,000 tonnes. But the data failed to confirm sales of U.S. wheat to Brazil, Britain or Russia that were rumoured last week. Weather woes also helped prop up prices, with an agricultural meteorologist saying the snow and rain showers moving across the U.S. Southwest Plains will help but not eliminate the harmful impact on wheat production from the worst drought in more than 50 years. Last week, the USDA said the stockpile of U.S. wheat at the end of the marketing year on May 31 will shrink to 691 million bushels, down from its previous forecast for 716 million bushels and the smallest in four years. In other grains, March corn edged up 0.1 percent to $6.95-3/4 a bushel, but its slide over the previous 10 sessions -- its longest losing streak in more than 5 years -- had set it up for a weekly decline of almost 2 percent. Corn rose in line with wheat, Mathews said. March soybeans fell 0.2 percent to $14.15-1/2 a bushel and was headed for a slight drop this week, hurt by lower-than-expected weekly export sales of U.S. soybeans. The government pegged sales at 235,900 tonnes, including net cancellations of 109,100 tonnes for 2012/13 and net sales of 345,000 tonnes for 2013/14. Trade estimates were for 700,000 to 1.1 million tonnes. "There's bearish news for oilseeds and that bearish news is the South American harvest," Mathews said. Brazil is poised to surpass the United States as the world's biggest soybean producer. Its harvest is 12 percent complete, above the five-year average of 7 percent, analyst Celeres said earlier this week. Grains prices at 0509 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 734.75 2.75 +0.38% -0.10% 761.93 29 CBOT corn 695.75 1.00 +0.14% +0.04% 715.13 26 CBOT soy 1415.50 -2.50 -0.18% -0.53% 1433.80 30CBOT rice $15.73 $0.01 +0.06% -0.79% $15.51 49WTI crude $97.35 $0.04 +0.04% +0.35% $95.68 60

Currencies

Euro/dlr $1.336 -$0.001 -0.04% -0.73%USD/AUD 1.036 0.000 +0.05% -0.07%

Most active contracts

Wheat, corn and soy US cents/bushel. Rice:USD per hundredweight

RSI 14, exponential

(Editing by Himani Sarkar)