On Thursday crop prices declined and the soybeans was the leader. In Paris there were also decreases, but mostly for rapeseed, while wheat and corn went down slightly.
EUR / USD index dropped to 1.1200. WTI crude oil dropped to 48.91 USD / barrel.

The Organization of the Petroleum Exporting Countries (OPEC) extended the restrictions on oil production for another nine months to March 2018, Reuters reported, referring to delegates at the meeting in Vienna. In this way, the organization will try to balance the markets and raise the cost of the raw material. It is likely that countries outside OPEC will join the restrictions. Their representatives will join the meeting later this day. The news, however, caused a drastic drop in oil prices, CNBC said. The reason is that many investors were expecting a reduction in production so that the surplus quantities of oil could be withdrawn from the market faster.Thus, at 15:00 Bulgarian time, crude oil was traded at 50.60 dollars per barrel, or a decline of 0.76 dollars. The European Brent reached a price of 53.08 dollars per barrel, which is 1.6% cheaper. Analysts commented that the markets have already gone ahead with the nine-month extension, and are now expecting "more", CNBC said.

Yesterday crop prices in Chicago and Paris went downwards. This happened mainly in the oil sector - soybeans and rapeseed. No dramatic events happened with the grain, oil, and the economy. The meteorological situation remains unchanged from the previous days, a very boring day. In the recent weeks the US currency has fallen sharply compared to other competitors. This gives an advantage to US production and it is successfully sold worldwide. The export levels achieved since the start of the US and EU seasons have not changed. Rates remain constant.

From the beginning of the current season (1.07.2016) until 23.05.2017, 21.8 million tonnes of soft wheat were exported from the EU incl. 4.3 million tonnes of French wheat, which is 21% less than the same period last year. Exports of barley reached 4.8 million tonnes (-51%).

Even in these times, with no clear market stance, Monsanto argues that this is the bottom of prices. In order for the market to operate with great supply in the coming years, price increases will be necessary. After four years of huge crops, stocks are now at pre-crisis levels rather than situation of pressing the prices.In the long run we can expect an upward trend for corn, wheat and soybeans. The speed of stock growth in the recent years is not high despite the big crops. Global grain and oil seed stocks and meat are now sufficient to meet world consumption for 73-74 days with a minimum of 58 days in 2008. Even so we are closer to the crisis than to the tranquil levels of the beginning of the century - 93 days.

This is what Monsanto expects and it seems to be  in the right direction. Only the inability to achieve record yields for 2 consecutive years may create a supply shortage. I'm not talking about a crisis, but about good years but without increase of crops. Thus, stocks of corn will be much under 200 million tonnes, and wheat will drop rapidly to this level. Soybeans should only fall below 75-80 million tonnes in order supply problems to be perceived. IGC forecasts a decline in world grain stocks in the new season by 34 million tonnes compared to the current year to 479 million tonnes. This may not be the end of the downsides, just the beginning.

In April import of oil seed cultures in China exceeded analysts' expectations. During the month, the soybeans imports reached 8.02 million tonnes (7.07 million tonnes in April 2016). From January to April, 27.5 million tonnes of soybeans (23.3) and 1.7 million tonnes of rapeseed (1.2) were delivered to China.

Wheat prices - yesterday wheat futures in Chicago dropped to a minimum. In the week from 12th to 18th of May export sales of wheat old crop from the US were 201,900 tonnes. Sales of wheat from the new crop were 342,913 tonnes, which was 3.3% lower than last year and 12.8% lower than last week. The export of wheat was 733 589 tonnes. The largest buyers were Mexico and an unknown buyer. The total wheat exports for the current season are 2.7 million tonnes lower than the USDA's estimate for the season, which ends in two weeks. SowEcon estimates the wheat crop in Russia in 2017 at 63 million tonnes or a growth of 0.5 million tonnes compared to the previous estimate.

Soybean prices - yesterday soybeans in Chicago dropped by 6.75 - 9 cents / bushel. Weekly export sales of soybeans old crop were 472 741 tonnes and for the new crop 6 000 tonnes. Last year's sales of soybeans new crop were 80.8% of the volume at that time. Exports of soybeans during the week were 334 682 tonnes. The largest buyers were an unknown buyer and China. Sales of soybeans meal were 125 000 tonnes + 34 900 tonnes and soybeans oil 10 000 tonnes. The Argentine Ministry of Agriculture expects the soybeans yiled in the country to be 58 million tonnes during the season, and that of the corn - 57.5 million tonnes. Soybeans is harvested on 79.6% of the area.

Corn prices - Yesterday corn prices in Chicago fell by 1.25 - 2.25 cents / bushel. Export sales of US corn old crop were 457 211 tonnes and of new crop only 500 tonnes. The export was 1 052 400 tonnes. The largest buyers were Japan, Mexico, Taiwan and North Korea. The USDA reported an export sale of 115,400 tonnes of corn from the old crop to an unknown destination. Argentina's Ministry of Agriculture estimates the country's corn crop at 46.5 million tonnes at USDA forecast of 40 million tonnes and 39 million tonnes at the Buenos Aires Grain Exchange.
This week's export sales of US crops are not inspiring.