Russia's wheat production is seen at 55 million tonnes, 3.5% lower than previously forecast because of heat and drought, according to the Institute for Agricultural Market Studies (IKAR).

That compares with a forecast of 57 million tonnes given on June 28, IKAR's director, Dmitry Rylko, said. Russia harvested 61.8 million tonnes of wheat in 2009.

The Russian grain crop is now estimated at between 85 million and 86 million tonnes, down from a previous forecast of 87.5 million tonnes, he said.

Russia's Ministry of Agriculture cut its grain forecast by 5.6% to 85 million tonnes on July 5 because of the nation's worst drought in a decade. Russia harvested 97 million tonnes of grain last year.