GRAINS-Wheat extends gains as U.S. crop condition at 16-year low

* Wheat puts two-day gain at more than 3 pct

* USDA says just 32 pct of crop at good to excellent condition

* Soybeans tick higher, corn flat

SYDNEY, April 4 (Reuters) - U.S. wheat futures rose nearly 1 percent on Wednesday to linger near an eight-day high amid fears of widespread crop losses in the world's largest exporter after a report pegged the condition of the crop at a 16-year low. Soybeans edged higher despite fears of weak U.S. sales amid signs of a widening trade war between the United States and China. The most-active May wheat on the Chicago Board of Trade was up 0.8 percent at $4.61 a bushel by 0226 GMT. The contract closed up 2.5 percent on Tuesday after peaking at $4.63-1/2, the highest since March 26. "The market had expected that recent rains would help U.S. crops but the U.S. Department of Agriculture report showed crops were worse than expected," said Andrew Woodhouse, grains analyst at Advance Trading Australasia. The USDA said on Monday that only 32 percent of the U.S. winter wheat crop was in good to excellent condition, down from 51 percent this time last year. It was the lowest rating for this point in the crop year since 2002. Chicago soybean futures rose 0.2 percent to $10.39-3/4 a bushel. Corn was flat at $3.88-1/2 a bushel. A cold and wet weather pattern is expected to persist in the heart of the U.S. corn belt through mid-April, stoking concerns that delayed planting could dent yield prospects. Acreage is already projected to be down from last year.

Grains prices at 0226 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 461.00 3.50 +0.77% +3.31% 473.43 54 CBOT corn 388.50 0.00 +0.00% +0.32% 382.25 71 CBOT soy 1039.75 1.75 +0.17% +0.41% 1043.96 57 CBOT rice 12.42 $0.04 +0.28% +0.89% $12.35 60 WTI crude 63.33 -$0.18 -0.28% +0.51% $62.82 46

Currencies

Euro/dlr $1.228 $0.001 +0.11% -0.15% USD/AUD 0.7709 0.003 +0.34% +0.61%

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

(Reporting by Colin Packham Editing by Manolo Serapio Jr.)