Russian Drought Still Hitting Wheat Production Hard

Russia's wheat production may plunge by 33 percent this year after the most-severe drought in 50 years harmed crops, a U.S. Department of Agriculture said.

Output will fall to 41.5 million metric tons in the year that began July 1 from 61.7 million tons last year, the USDA's Foreign Agricultural Service said. The attache's estimate was below the official U.S. projection announced last month. Russian exports will plunge 78 percent to 4.1 million tons.

"Significant grain area was destroyed by drought, and harvested area might be one of the lowest in the last 10 years,” the U.S. report noted. Russia, once the world's third- largest grower, barred exports of grains in August.