On Tuesday wheat and corn prices in Chicago dropped, and soybean remained stable. In Paris there were growths led by corn and soybean.

The EUR/USD rose to 1.0927. WTI crude oil went down to 47.47 USD/barrel.

Crude oil prices remain at low level on Wednesday after China's industrial activity data and awaiting US Oil Stocks later today. The PMI in the Chinese industry recorded a decline from 51.2 to 50.3 points, which is a six-month low. The survey is also monitored by oil investors because it gives signals for demand in the world's second largest oil importer. During the Asian trade, prices fell after Libya announced it was raising its crops to the highest level since 2014. Libya's output is recovering after two key oil fields started to work again. And in the US mining is marking growth. Last week Baker Hughes said oil platforms had increased by 9 to 697. Traders fear that OPEC's contraction efforts can not offset shale production in the United States. The cartel met on May 25 to decide whether to extend the agreement after the end of June.

On Monday wheat prices in Chicago rose sharply after the snow in the US wheat belt during the  weekend. The damage concerns mostly crushed stems of the plants. The markets await the observers who will examin the crops and will come with conclusions and predictions. On Tuesday however, wheat prices declined because of the uncertainty about the damages. During the weekend there was much rainfall which stopped  the farmers' campaigns.

Prior to the snowfall, winter wheat yield in the US was estimated at 48 bushels / acre at 47.1 bushels / acre a year ago. Now there will be a reduction but we will see how big it will be. The first forecasts indicate a decline in the yield of wheat of about 10% or 1.3 million tonnes of crop.

Precipitation stopped the sowing of corn in the US.The corn crops has also been damaged and part of the ares will be re-cropped with corn or soybean. The risk of  increase of the areas cropped with soybean caused the drop down of the price of this culture yesterday in Chicago. The forecasts for further rain add uncertainty for the market. Another problem will be the lower temperatures in the coming days.

US farmers have planted with corn and spring wheat more than 1/3 of the planned areas , according to USDA. As of 30.04.2017 with corn are planted 34% of the planned area compared to 43% a year earlier. The plants have grown on 9% of the area (12% a year earlier and 8% on average basis for the past five years). The sowing of spring wheat continue to lag behind the schedule. As of 30.04.2017 31% of the planned areas (52% and 46%) were planted and on 9% of the areas (17% and 20%) the plants have grown.

Several news from the Black Sea region:

In the period 21-27 April  404,900 tonnes of grains were exported from Russian seaports at 696,400 tonnes a week earlier. 299 600 tonnes of wheat, 40 400 tonnes of corn and 64 900 tonnes of barley have been exported. Major buyers were Yemen 120 000 tonnes and Egypt 92 700 tonnes.

In the new season Romania's grain crop will drop by 1.8% and exports by 1% according to FAS USDA latest forecast. The winter wheat and barley are in good condition. The yield of these crops will be lower than in 2016 due to less areas planted. Wheat production will drop to 7.8 million tonnes (8.5) and barley to 1.65 million tonnes (1.8). The corn crop will rise to 10.5 million tonnes (10.0). In the current season the exports of wheat from Romania will reach a new record high level of 5.5 million tonnes. In the new season export will be 5.0 million tonnes. The main buyers will be North Africa and the Middle East. Exports of barley in the new season will remain at the current level of 1.55 million tonnes with a major buyer Saudi Arabia.

Yesterday, in Paris grains prices rose and the leaders were wheat and corn. The minimal rainfall that fell in France during the weekend is the reason for the increase. There was rainfall but it will not have a decisive impact on the crops. At the end of the week new rainfall of 15 - 20 l / sqm is expected. Let's see how much the forecast will come true.

In Ukraine and Russia the rainfall is scarce - it's raining in some places, but in many other it does not rain at all. Temperatures are rising gradually.

Corn price – Yesterday corn futures in Chicago went down by 2.50 - 5.25 cents / bushel. The sowing campaing advances faster than the market expectations. In the past week in Illinois it advanced from 29% to 63%, and Indiana, Iowa and Nebraska reached 45%, 28% and 34%.

Soybean price – Soybean prices in Chicago yesterday showed various changes. Soybean planting in Indiana reached 16% of the planned, Illinois 13%, and Nebraska 8%. Farmers in Brazil sold 51% of their soybean at an average of 64% for the recent years. Despite the delayed sales of the farmers, in April the export of soybean from Brazil reached 10.43 million tonnes, or 3.37% more than April 2016 and 16.15% more than in March 2017.

Wheat price – Yesterday wheat futures in Chicago ended the day with divergent movements. On the first day of the Kansas tour (after the snow), the analysts estimated an average yield of 48 bushels / acre, so without significant decrease.

For now this is the situation - the market is confused. All signals are for decrease in the yields and crops, but the market does not react seriously to this. We are used to get huge crops in the recent years, and we can not see the things from another angle. Still the key role is that of the huge inventories, which is the reality and it can not be ignored.