EUR / USD indeex rose to 1.1213. WTI crude oil dropped to 45.94 USD / barrel.

OPEC and its partners oil output accelerated in May to the highest level since November, while its members were trying to reach a prolongation of the shrinking deal. The reason is that Nigeria and Libya have compensated for the reduction in extraction of the other members of the cartel. Although production in Nigeria and Libya remains volatile due to political instability and violence, their combined production has increased by more than 350,000 barrels per day in the past month, according to OPEC consultants and analysts. This volume is equivalent to more than a quarter of the OPEC mining shrinkage since the beginning of the year.Libya and Nigeria contributed to raising total OPEC production to 32.1 million barrels per day, compared to 31.8 million barrels per day, according to the group's monthly oil market report. The level is still under 33 million barrels per day, which was the average for the group in the last three months of 2016 before OPEC negotiated the deal.

Meanwhile OPEC has maintained its forecast for global demand for the black gold in 2017 at 96.38 million barrels a day. This is the report published today by the cartel. No change has the estimate of the growth rate of the global demand this year - 1.27 million barrels per day. The search for black gold produced by cartel members, according to the organization's forecast, will be 300,000 barrels per day more than in 2016, or 32 million barrels per day. Separate data from OPEC's analysis unit on Tuesday showed that the average barrel oil price produced by the organization in 2016 amounting to $ 40.46. A year earlier the price was 49.49 dollars.

Monday's news about the US wheat condition moved the market Tuesday. Towards the end of last week, US spring wheat was sown on 95% of the planned area at 90% a week earlier and 92% on average over the past five years. In good and excellent condition are 45% of the areas at 55% a week earlier and 79% a year earlier. These are the worst ratings for spring wheat for almost 30 years. Definitely high-quality wheat in the US in the new season will be a little bit. It was little in the current season, but now even more. The question immediately follows - What will be the weather in the northern parts of the United States over the next 10 days ???? Temperatures will not be high + 15 + 28 degrees, with rainfall up to 10 l / sq.m. which is nothing in a situation of great drought. Changes will not happen there !!! Similar is the situation in the southern parts of Canada. There the higer value of the Canadian currency limits the competitiveness of local production.

We had a similar condition of the crops in 2012, which is considered a total collapse in the production of all crops in the United States. However some forecasts show precipitation in the coming days, but some of the crops will be too late.

Since a long time there were no news about the wheat condition in Russia. The last thing we saw was the growth of the USDA forecast for the crop in 2017 from +2 million tonnes to 69 million tonnes. According to data from farmers in the central parts of the country in 2017 the financing of small and medium-sized farmers was very difficult and not at the level of 2016. In production far less money has been invested in the recent years - mainly the reduction is for fertilizers and chemicals. The cool weather during the season has slowed the growth of crops. This information contradicts the USDA's expectations, but let's see what development will be in the coming weeks and months.

Drought and warm weather continue in Spain and France. Over the next 10 days rainfall is not expected, which will be a problem for winter and spring crops. It is possible that the wheat cropin France will drop below 35 million tonnes.
Certainly in many places in the northern hemisphere wheat does not develop well and has enormous potential for smaller yields - against current expectations.
Yesterday Egypt purchased 300,000 tonnes of wheat after the purchase on Saturday of 360,000 tons. 180,000 tonnes of Russian wheat, 60,000 tonnes of Ukrainian and 60,000 tonnes of Romanian wheat were purchased. Prices remained unchanged from the previous auction - 192.6 - 194 FOB Black Sea.

In good and excellent condition of the corn crops in the United States are 67% of the area at 68% a week earlier and 75% a year earlier. The first estimate of soybean status in the United States in good and excellent condition was estimated  66% of the area at 74% a year earlier.
Doubts that forecasts for soybeans imports in China will begin to grow are now materializing. According to the latest forecast of Oil World, in 2016 - 2017 China will import 91 million tonnes of soybeans, which will be 7.77 million tonnes more than 2015-2016. Between January and April China achieved a record of 27.5 million tonnes of soybeans, US 17.2 million tonnes (15.12), Brazil 8.84 million tonnes (6.96), and Argentina 135 000 tonnes (321 000). During the period January - April 2016, China imported 23.3 million tonnes of soybeans. So far there is no evidence (despite many doubts) that the country will reduce the pace of soybeans imports in the coming months.

Wheat prices - yesterday wheat futures in Chicago rose by 10 - 12.25 cents / bushel. Taiwan purchased 92,400 tonnes of wheat from the United States. Japan is looking to buy 162,286 tonnes from the US, Canada and Australia. Global demand for wheat remains stable despite the upcoming new harvest. No one is expecting a drop in prices alongside the new crop, and everyone is shopping at the moment.

Soybean prices - yesterday soybeans prices in Chicago rose by 0.25 - 1.25 cents / bushel. Informa Economics lowered its forecast for soybeans areas in the US in 2017 to 89.362 million acres at 89.7 million acres in the May forecast. US soybeans processed in May is expected to be 3.89 million tonnes, which is 5.97% more than May 2016 and 4.42% more than in April.
Corn prices - yesterday corn prices in Chicago rose by 3.25 - 4 cents / bushel. Informa Economics raised its forecasts for US corn areas in 2017 to 90.186 million acres compared to 89.7 million acres in the May forecast.
The too much soybeans areas  in the US and the reduction of such with  corn is now being corrected.