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GRAINS-Soybean prices edge away from 10-yr low, but trade tensions drag

SYDNEY, May 10 (Reuters) - U.S. soybean futures on Friday inched away from an over 10-year low touched the session before, but remained under pressure as the specter of deepening U.S-China trade tensions loomed over the market.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board of Trade were down 3 percent for the week, in what would be their biggest weekly slide since August.

* Soybeans on Thursday hit their lowest since December 2008 at $8.06-1/2 a bushel.

* The most active corn futures were down more than 4 percent for the week, set for their largest weekly loss since the end of March.

* The most active wheat futures were down 1 percent for the week, on course for their fifth straight weekly decline.

* Top U.S. and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China.

* U.S. President Donald Trump has accused China of reneging on commitments it made in earlier talks and vowed to impose new tariffs on imports of Chinese goods at 12:01 a.m. EDT (0401 GMT) on Friday. China has threatened to retaliate.

* The U.S. Department of Agriculture (USDA) in a weekly report on export sales on Thursday said "unknown destinations" had canceled purchases of 263,500 tonnes of U.S. soybeans.

* Brazil's agricultural agency Conab on Thursday raised its forecast for the nation's 2018-19 soy crop to 114.313 million tonnes.

* The USDA will on Friday issue a monthly report that is expected to confirm large U.S. inventories of soybeans, corn and wheat.

MARKET NEWS

* The safe-haven Japanese yen and Swiss franc stood tall on Friday amid investor concerns that a long-standing rift over trade between the United States and China could deepen if talks between the two fail to reach a last-minute deal. Wall Street's main indexes fell on Thursday.

* U.S. oil prices rose on Friday on renewed optimism that a trade deal between Washington and Beijing could be struck.

DATA/EVENTS (GMT)

0830 UK GDP Est 3M/3M March0830 UK GDP Estimate MM YY March0830 UK Manufacturing Output March0830 UK GDP Prelim QQ YY Q11200 Brazil IPCA Inflation Index MM April1200 India Industrial Output YY March1230 US CPI MM, SA April

Grains prices at 0101 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 433.00 3.50 +0.81% -1.37% 451.90 33CBOT corn 354.75 1.50 +0.42% -2.61% 366.07 29CBOT soy 817.50 4.75 +0.58% -1.18% 878.77 14CBOT rice 10.93 -$0.01 -0.05% -0.18% $10.73 68WTI crude 62.31 $0.61 +0.99% +0.31% $63.29 45

Currencies

Euro/dlr $1.123 $0.001 +0.05% +0.31%USD/AUD 0.6998 0.001 +0.14% +0.14%

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

(Reporting by Colin Packham; Editing by Joseph Radford)