CBOT wheat declines on forecasts for beneficial US rains

CHICAGO, Feb 25 (Reuters) - Chicago Board of Trade wheat futures slumped on Wednesday on forecasts for beneficial rains in dry areas of the U.S. Plains, traders said.

• Rains will begin to reduce dryness in wheat-growing areas by late next week, while warm weather will activate growth for crops, Commodity Weather Group said.

• Analysts expect the U.S. Department of Agriculture on Thursday will report 2025-26 U.S. wheat export sales were 250,000 to 500,000 metric tons in the week that ended on February 19, according to a Reuters poll.

• Algeria's state grains agency OAIC was believed to have purchased about 600,000 metric tons of milling wheat in a tender that closed on Tuesday, and negotiations were continuing on Wednesday, European traders said.

• CBOT May soft red winter wheat WK26 ended down 3-1/2 cents at $5.69-3/4 a bushel. The contract extended a setback after climbing on Monday to the highest level since July 29.

• K.C. May hard red winter wheat KWK26 dropped 2-3/4 cents to finish at $5.64-1/4 per bushel, and Minneapolis May spring wheat MWEK26 edged up 1-1/2 cents to close at $5.97 per bushel.