CHICAGO, June 18 (Reuters) - Chicago Board of Trade wheat futures fell on Thursday, halting a three-day rally, as a rebound in grain markets from multi-month lows lost steam and traders looked to adjust positions ahead of the three-day U.S. holiday weekend.

• Strength in the U.S. dollar also weighed on grain markets. The dollar index /.DXY rallied after the Federal Reserve held interest rates steady on Wednesday, but policymakers expect a hike in borrowing costs later this year amid growing concerns about inflation lodged above the U.S. central bank's 2% target.

• A stronger dollar makes U.S. commodities more expensive for overseas buyers.

• CBOT July soft red winter wheat WN26 settled 7 cents lower at $6.05-3/4 per bushel, while most-active September WU26 ended down 7-1/4 cents at $6.14 a bushel.

• K.C. July hard red winter wheat KWN26 ended down 8-1/2 cents at $6.44 a bushel and Minneapolis July spring wheat MWEN26 fell 2-1/2 cents to finish at $6.23 a bushel.

• Chicago markets will be closed on Friday for the Juneteenth holiday.

• In Thursday's weekly USDA export sales report, the agency reported sales of 400,844 metric tons of wheat for the week ended June 11.

• Ahead of the report, analysts expected the government to report net export sales of U.S. wheat at 300,000 to 700,000 metric tons.