GRAINS-Corn up on stock market gains; soy wheat weak

* Corn futures higher on stock market strength

* Wheat down slightly as dollar crimps export demand

* Traders still focused on global economy

CHICAGO, Feb 18 - U.S. corn futures edged higher on Wednesday on spillover strength from a rising stock market but soybean and wheat prices weakened on concerns about the global economy, traders said.

"For the most part, the outside markets are the controlling feature," said Joe Victor, analyst with research and advisory firm Allendale Inc. "The Dow Jones right now is definitely the leader in this market."

Fears about the global economy hurting demand for U.S. commodities weighed on the market.

"There are a lot of jitters about the (economic) stimulus package and whether it will work," a trader said.

Wheat futures also were hurt as strength in the dollar and rising competition dampened export prospects for U.S. supplies.

But the market turned, with soybean, corn and wheat futures bouncing off lows hit at the open of trading at the Chicago Board of Trade as the Dow Jones industrial average gained strength.

"The market is now focused on the performance of broader markets, such as stocks, and grains are unlikely to see any meaningful rebound unless the global economy shows some signs of stabilization," said Han Sung-min, a trader at KEB Futures.

Some short covering in the commodities market was noted following a sharp downturn on Tuesday.

At 10:54 a.m. CST (1654 GMT), the CBOT March soybean futures contract was down 2-1/2 cents at $9.00-1/2 a bushel while the CBOT March corn contract was up 1 cent at $3.50-1/4 a bushel. CBOT March wheat was down 3 cents at $5.12-1/2 a bushel.

Forecasts for rain in Argentina, the third-largest soy exporter, further pressured soybean prices.

EXPORT GLOOM IN EUROPE

In Europe, milling wheat futures were negative, with the March contract down 1.75 euros at 142.25 euros a tonne, due to gloom about export prospects.

"It looks like European wheat will have little chance in the next tenders. Apart from a bit of business in the Maghreb and Africa, the prospects are deteriorating," one trader said.

Export sentiment has been dented by Russia's re-emergence in the latest Egyptian tender with aggressively priced grain.

Demand worries were also fueled by slackening business with recession-hit feed makers, another European trader said.

In technical terms, the next support for March on Euronext is between 139 and 140 euros, while the May contract -- which is becoming the near-month benchmark for traders -- has a next level at 141 euros, traders added.