On Tuesday wheat and corn prices rose, and soybean went down. In Paris wheat rose but corn and rapeseed went down.

EUR / USD index increased to 1.0937. WTI crude oil dropped to 48.40 USD/barrel.

Traders expect the US Petroleum Institute to announce that there has been a decline of 1.3 million barrels a day last week. In addition, drop down is expected for the reserves of fuel for heating by 1.2 million barrel daily, and for the petrol the forecast is for decline of 1.225 million barrels. On Wednesday, the official government data of the Energy Information Administration will be published. Last Friday Baker Hughes announced that oil platforms in the United States increased with 5 up to 688. Investors are beginning to wonder if OPEC will actually extend the agreement for shrinking of the mining beyond the end of June. The cartel will meet on May 25th.

Yesterday Chicago's crop prices were diverging. This is due to the delayed sowing of spring wheat and corn and the view that part of the latest planned sowing areas for these crops will be transferred to soybean. Yesterday oil cultures in Chicago went down. Up to now in the US 17% of the area planned for corn are sown, which is in line with the expectations. On weekends farmers in the US have been rapidly sowing corn ,and per day 5% of the planned area had been planted.

In the US 22% of the planned area is sown with spring wheat at average level of 34% over the past five years. In the coming days new precipitation is expected and it will stop the campaign. A new rainfall is already seen as a problem by the analysts and instead of supporting the culture, they are considered to be a major factor for sowing delays. In US the sown with soybean area is 6% of the planned , which is a good indicator. The data concernind the sowing of the three major crops in the US shows that farmers are seriously equipped to make things fast.

In the time until May 7th, large part of the corn belt will get over-normal rainfall. It will be worrying if until that date the farmers have not completed more than  the 50% level of the corn sowing campaign. Demand of soybean from the US continues to be strong and this prevents from collapse in the prices of this culture. It is interesting to emphasize that the prices of American soybean with delivery in June - July are almost equal to those of Brazilian soybean. Apparently Brazilian farmers can not provide cheaper supplies.

Yesterday the US currency continued to weaken against the results of the French elections.

In Canadian prairies there are heavy snowfalls and this slows the sowing of spring wheat. In the coming days rainfall will not stop and the temperatures will remain low until the end of the week. The so-called spring sowing can become a summer sowing.

In Europe the prices are supported by the lack of rainfall in France, Spain, the UK and other countries in the region.

According to APK Inform during the period 15th-21st April the Ukrainian ports have exported 542,400 tonnes of grain versus 1.58 million tonnes a week earlier. The export of wheat was 130 100 tonnes, corn 328 700 tonnes and barley 83 600 tonnes. The largest buyers were Egypt 167 200 tonnes, Spain 95 300 tonnes and Saudi Arabia 63 600 tonnes. The decrease is normal considering the high level of export achieved a week earlier. It is noteworthy that the export of wheat is relatively strong having in mind the decreased Ukrainian stocks.

From the beginning of the current season (2017 - 2018) wheat exports from Argentina are 4% higher than in the same period last year. During the period 1.03 - 25.04.2017 4.96 million tonnes of corn were exported from the country. By the end of the season  exports are expected to be 21.54 million tonnes,which is 35.7% more the previous season. In 2016 from Argentina to Brazil 1.4 million tons of corn were exported, and in the period January - March 2017, 263 000 tonnes. During the period 01.12.2016 - 25.04.2017 the wheat exported from Argentina is 49% more than for the same period last year. As a result the export potential which in the near future may support the world prices, has sharply declined.

From the beginning of 2016 - 2017 from Argentina are exported 7.486 million tonnes of wheat.  There are 1,014 million tonnes remaining for  until the end of the export season, which is 74% less than last year’s result.

The market swallows all  quantities even faster than the previous year. By the end of the season Argentina will be a not very active player on the world grain market.

India's Ministry of Health has increased its forecast for wheat crops in the country in 2017 from 96.64 million tonnes to the record high 98 million tonnes. Growth is due to higher expectations of the yields. Authorities in India always put +5 million tonnes over the actual yields. I guess now it is similar situation.

At present the demand of wheat on the world market is particularly strong. Active buyers are Algeria, Tunisia, Iraq.

Corn price – Yesterday corn futures in Chicago rose by 4 - 6.25 cents / bushel. Precipitation in the US corn belt will be enough to stop the sowing of crops again. Today we expect data on the weekly ethanol production in the United States. Last week it rose by 7,000 barrels a day to 993,000 barrels.

Soybean price – Yesterday soybean futures in Chicago fell by 5.25 - 6.75 cents / bushel. In Brazil 93% of the soybeans areas are harvested, the crop is in the farmers but they do not sell expecting  higher prices. According to the Chinese customs  6,326 million tonnes of soybean were imported into the country in March, 3.7% more than in March 2016.

Wheat price – Yesterday wheat futures in Chicago rose by 6 - 7.75 cents / bushel.

The growth of wheat and corn prices is due to the concerns about less cropped areas. But we must also consider the strong demand for these crops in the world, even in a period of expected new wheat harvest. Buyers are not ceased, taking in consideration the new wheat harvest in 2017 can be significantly weaker, and hence the supply and the prices to raise.