GRAINS-Wheat drops to 10-day low as U.S. weather outlook improves

* Wheat falls 1 percent to lowest since April 6 on U.S. weather

* Corn eases for 2nd day, soybeans unchanged after Friday's drop

(Adds details, quotes) SINGAPORE, April 16 (Reuters) - Chicago wheat futures slid 1 percent on Monday to a 10-day low as forecasts of rains across key U.S. winter crop areas eased fears about yield losses following a severe drought. Corn dropped for a second day while soybeans were little changed after closing lower on Friday. The most-active wheat contract on the Chicago Board Of Trade lost 1 percent to $4.68 a bushel by 0246 GMT. The market dropped earlier in the session to a low of $4.65-1/4 a bushel, the weakest since April 6. Corn gave up 0.5 percent to $3.84-1/2 a bushel, having closed down 0.6 percent in the previous session while soybeans were almost flat at $10.54 a bushel, after closing down 0.6 percent on Friday. Rains forecast across U.S. Plains are expected to provide much needed relief to crops suffering from dry weather. "Weekend snow storms in the U.S. largely missed the driest hard red winter wheat regions, so no moisture boost there," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "The market can see another rain event this week in weather model projections." Lack of demand for U.S. wheat is adding pressure on prices. The U.S. Department of Agriculture (USDA) on Thursday reported export sales for old and new crop U.S. wheat in the latest week at 188,700 tonnes, below trade expectations.

Lower soybean production in Argentina is expected to keep a floor under the oilseed market. Argentina, the world's No. 3 soybean producer, has struggled with a drought that has slashed its crop. However, yield prospects are bright in neighbouring Paraguay and Brazil. Paraguay will produce just over 10 million tonnes of soybeans in 2017/18, slightly less than a year earlier, the national export chamber CAPECO said on Thursday. Large speculators raised their net long position in CBOT corn futures in the week to April 10, regulatory data released on Friday showed. The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.

Grains prices at 0246 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 468.00 -4.50 -0.95% -2.70% 472.52 44 CBOT corn 384.50 -1.75 -0.45% -1.09% 384.53 47 CBOT soy 1054.00 -0.25 -0.02% -0.64% 1041.56 59 CBOT rice 13.07 -$0.04 -0.34% +1.40% $12.49 79 WTI crude 66.82 -$0.57 -0.85% -0.37% $63.62 64

Currencies

Euro/dlr $1.234 $0.001 +0.06% +0.10% USD/AUD 0.7775 0.001 +0.12% +0.27%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral; editing by Richard Pullin)