Wheat up, heads for best monthly gain since 1973

US wheat futures rose on Thursday, on track for their biggest monthly gain since 1973 on fears of lower exports from drought-stricken eastern Europe, especially third-largest global exporter Russia. Russian analysts on Wednesday forecast a near halving of the country's grain exports as its worst drought in years hits output, while other producers in the region, home to three of the world's top ten wheat exporters, are also likely to have less to sell. Front-month US wheat futures rose to $6.18-3/4 a bushel at 0944 GMT, just short of the 13-month high of $6.23-1/4 hit the previous day and heading for a 33 per cent gain this month.

By 0938 GMT benchmark November wheat futures in Paris were off 0.26 per cent at €189.00 ($246) per tonne after hitting a new contract high of €193.75 a tonne earlier, up a third since the start of the month. The contract Corn and soybean futures aso posted gains in Chicago, although they have been lagging wheat due to good weather for the developing US crops. August soybeans rose 0.74 per cent to $10.18 a bushel and September corn was up 0.53 per cent at $3.78-1/4.