EUR / USD index dropped to 1.1204. WTI crude oil rose to 46.06 USD / barrel.

Markets face an extremely busy week - with sessions of central banks in the US, UK, Japan, Switzerland, Turkey and Russia.

Yesterday grain and oil crop prices in Chicago declined as a result of reduced concerns about the weather conditions in the next 10-15 days. Weather in the weekend turned out to be less stressful for the crops than expected. Temperatures should have exceeded  +35 degrees, but it did not. In the latest forecasts, rainfall in the US corn belt is expected at the end of the week at not very high temperatures. Precipitation will not be much in quantity, but it will temporarily save the situation until the next rainfall arrives. In case the rainfall is below expectations, then the prices of spring wheat will quickly recover the losses and will chase new heights.

Changes in the US are positive, but nothing good is happening in Australia and China. Drought in Australia is getting worse, and this hampers the new wheat crops. In the northern parts of China, drought destroys wheat and corn crops.
USDA marks a new export sale of 130,000 tonnes of corn for an unknown destination.

US export data were strong - 1.04 million tonnes of corn, 773.992 tonnes of wheat and 508,200 tonnes of soybeans.

In Europe nothing new. In Western Europe continues the drought as it spreads from Spain and France to Germany. Surprisingly it is raining in the Balkans - something that does not happen very often. All the crops in Bulgaria are in very good condition and now the fight is with the diseases of the wet weather. In Ukraine drought continues, which harms the winter and spring cultures. Surprisingly the USDA raised its forecast for wheat crops in Russia in the new season by +2 million tonnes to +69 million tonnes. Apparently the estimations are about not so bad condition of the crops at the end of spring.It should be remembered that the USDA forecasts are based on the condition of the crops at the moment and not on future forecasts for precipitation and problems. Generally future events are considered to be almost as favorable as possible

In India wheat crop is harvested as it is big and of good quality. The problems in China are clear and I hope to reduce enough grain crops in the country so that relatively big imports will be needed- from 5 to 6 million tonnes of wheat and 6 - 8 million tonnes of corn .
The Southern Hemisphere marks the first problems with the wheat crops in Australia and Brazil and these issues are quite promising. Imports of wheat in Brazil will grow significantly, and Australia will harvest wheat crop much below the previous season's level - maybe under 25 million tonnes.

Wheat prices - Chicago wheat futures fell by 9-12 cents / bushel yesterday. In the past week the reduction in net short position of wheat in Chicago was 7,624 contracts to 106,136 contracts. Again, I would point out that the global ending stocks of wheat in the new season are raised once again to more than 261 million tonnes. This will be a big problem for prices not only for wheat, but also for barley and corn.

Soybean prices  - yesterday soybeans prices in Chicago dropped by 9 - 10 cents / bushel. The USDA reported an export sale of 201,000 tonnes of soybeans from the current crop to an unknown destination. Analysts from AgroConsult have increased their forecast for soybean crops in Brazil in 2016-2017 to 115 million tonnnes, which is the highest expectation for now. Last week the short position of soybeans in Chicago rose with a further 5,427 contracts.

Corn prices - Yesterday corn futures in Chicago fell by 9 to 10 cents / bushel. The net short position for corn in Chicago was lowered last week by 62,223 contracts to 138,758 contracts.
The reported meteorological problems in different parts of the world at the end of last week remain unchanged. Just yesterday some of the investors decided to collect their profits so far. We look forward to the development of this situation and we will follow the rainfall in the world.