On Tuesday Chicago's crop prices declined the soybeans being the leader. In Paris the decreases were also ubiquitous.
EUR / USD index fell to 1.1186. WTI crude oil rose to 49.76 USD / barrel.

The German chancellor Angela Merkel, who is usually moderate in her speeches, used atypical sharp words in the weekend, giving signs of a change in the post-war order. The growing disappointment from the US President Donald Trump, the determination to reform Europe with the new leader of France, and the more political concerns convinced Merkel to take this position, German and European officials said.

Brazil is one of the main sugar and soybean producers in the world. Just because of the big production yesterday soybean futures in Chicago collapsed. The weakness of the Brazilian real has been the catalyst for the decline in the recent days. Meanwhile, soybeans face doubts about the stability of Chinese demand. Another factor is the wet weather in the US Midwest and the perspective of transferring more areas from corn to soybean.There was no news to support the prices - neither production nor consumption. Weekly export sales of US soybeans are at a good level - 335,519 tonnes, slightly below the previous week, but much above the result of the previous year - 205,102 tonnes. USDA reported export sales of 132,000 tonnes of soybeans to an unknown buyer. But that did not impress the markets at all, and there was no reaction.

Yesterday in Chicago corn ended with a steady decline. The rainfalls in the US corn belt have been less than the initial forecasts, which has reduced the expectations of incomplete croppping of the rest areas, as well as for over-planting of the already treated ones. The impression is that US weather has improved a lot compared to the previous week, and this is a major factor driving sales. It should be noted that over the past week the weather conditions were too negative. Now in May we moved to the other extreme situation - very positive.

In the past week US export controls for corn were 1.19 million tonnes at 1.17 million tonnes a week earlier and 786,507 tonnes a year earlier.
Yesterday the wheat in Chicago also dropped following the corn. Harvest of wheat begins in the southern parts of Oklahoma. The first results are for good yields and quality . Yields are currently in range of 59 - 64 bushels / acre.

Problems with the weather we have also in Europe. Traders avoid taking positions before seeing the reports for crop damages from the hot days. Rainfall is low in France and Spain. In the UK the drought that had placed  in  over the recent weeks has been sharply replaced by heavy rainfall in the weekend. This changes the situation a lot and will be a factor in the coming months.

Important news has arrived from Argentina. The country's first forecast for the yield of wheat in 2017 - 2018 is at a high level of 20 million tonnes, which is 1.6 million tonnes above the  estimate in 2016-2017. The forecast came despite the expected fewer cropped areas - 360,000 hectares of reduction to 16.0 million hectares and insecurity for the rainfall in the coming months.The prognosis for growth is based on the new wheat varieties used and the more fertilization. The production technology  and the quality of its implementation is changing. The potential for this came after the abolition of export duties on wheat at the end of 2015 and the result now are evident. The USDA forecast for the new crop is 17.0 million tonnes and the IGC 16.5 million tonnes. Agritel said the figure of 20 million tonnes was a overvalued indicator. On the Buenos Aires Grain Exchange, they estimate the areas of wheat during the season much under the assessment of the Ministry of Health. The weakness of the peso creates advantages for exporters, but makes it more expensive to import seeds, fertilizers and chemicals.

Wheat prices– yesterday wheat futures in Chicago fell by 8.75 cents / bushel. In the United States, 80% of winter wheat has evolved. In Texas, 22% of wheat is harvested at 15% last year. In good and excellent condition from the winter wheat is 50% of the areas at 52% a week earlier and 63% a year earlier. With spring wheat 96% of the planned area is cropped. In good and excellent condition aree 62% of the areas at 79% a year earlier. Weekly US export controls for wheat are at 602,913 tonnes, which is 21.33% more than last year but 11.88% less than last week. Iraq is looking to buy at least 50,000 tonnes of wheat. Egypt is looking to buy American wheat with shipment in early July.

Soybean prices– yesterday soybean futures in Chicago collapsed by 9 - 13.75 cents / bushel. By the end of last week in the US soybean is sown on 67% of the planned area at 53% a week earlier and 68% on average over the past five years. Weekly US soybean export controls are at 335,519 tonnes, down by 5.56% less than last week, but 63.59% more than last year. Since the beginning of the season, exports have been 7.21 million tonnes higher than in the previous year. Argentine port workers plan a three-day strike in Rosario.

Corn prices–  yesterday corn futures in Chicago fell by 4.25 - 6.75 cents / bushel. By the end of last week, 91% of the area planned for corn (84% and 93%) was sown in the United States. In good and excellent condition of the crops are 65% at 72% a year earlier. Weekly export controls of US corn are at 1.195 million tonnes (+ 2.28% and + 51.9%).

So far the news from the US are optimistic and there is no support for the prices.