Russia's worst drought for decades is set to drag on for at least the next 7 days in some areas but further serious damage to grain crops is not expected, a senior government weather forecaster said on Thursday.
Drought in some regions of Russia, one of the world's biggest wheat exporters, has sent global prices soaring to year highs in July, putting U.S. wheat futures on track for their biggest monthly gain since 1973.
Grain traders say the rally shows signs of continuing, although analysts observed stocks built up over the last two years of the largest global wheat harvests in history should ensure sufficient supplies.
The International Grains Council confirmed the impact of drought and floods in the key Black Sea growing area as it cut its 2010/11 forecast of global wheat output by 13 million tonnes to 651 million tonnes, but said it would still be the third highest crop on record.
"A prolonged period of dry weather and high ...