EUR/USD index rose to 1.1166. WTI crude oil went down to  42.64 USD/barrel.

Analysts warn that if oil crosses the $ 40 psychological limit in its downward movement, the hopes for stabilizing the inflation will come to an end. Oil prices have fallen to more than 10-month bottom after US government's data showed that local output is rising again. This raises fears of global oversupply and deliveries, even against the background of  drop in crude oil stocks in the US for a second consecutive week, this time with 2.5 million barrels.According to analysts the most serious obstacle for the market remains the steadily rising output in the US, which offset OPEC's reduction in production. This also puts pressure on the readiness and willingness of the countries in the cartel  to continue to maintain the agreement.

Yesterday, commodity markets in the world declined, including grains. The drop was mainly due to the oil. The weather conditions in the northern states of the United States and southern provinces of Canada are similar - there is rainfall , but insufficient, spring wheat is developing but not very well. In the last days spring wheat has significantly increased its price, and now there is a need for a correction, because the supporting factors such as drought, for example, do not have the strength to do anything else.

In Europe and Ukraine, hot and dry weather continues. The weather will be with no change in the next week, which will hinder not only winter wheat but also the spring. Forecasts for wheat crops in France are down. However the decline is not in line with market concerns and price increases. I expect the wheat crop in France to be under 35 million tonnes.

In the Australian states of Western Australia and South Australia is expected rainfall,  but not significant.
Overall, weather forecasts over the next 15 days are not likely to attract new grain purchases, t.e. the market assesses current prices and future crops as balanced at these levels.

In the past week, ethanol production in the United States dropped by 12,000 barrels per day to 990,000 barrels per day. Product inventories declined by 262,000 barrels to 22,28 million barrels. Since the beginning of the season up to now, processed into ethanol corn in the US is 121.86 million tonnes, which is 4.85% more than the previous year.

Corn prices remain under stress and has fallen in the recent days. The good condition of the US crops and Brazil's second crop have a major impact on the market. The big short position of corn in Chicago is diminished. Certainly the US corn crop will not be small, but the details now move the market, and they are hard to predict.

Farmers in South America hardly sell soybeans at the current prices. Better times are being waited. At the same time soybeans sowing in the US finished successfully. In the recent days soybeans are not the focus of markets, but the price has gradually and surely declined.

Demand for palm oil is not at the top, but it is not weak. In Indonesia palm oil stocks are declining as a result of strong demand for exports and greater domestic consumption.

Wheat prices - yesterday wheat prices in Chicago fell by 1 - 8.25 cents / bushel. Export sales of wheat from the US are expected to amount to 300,000 - 500,000 tonnes. Egyptian state-owned company GASC will hold a wheat purchase auction with delivery from 25.07 to 05.08.2017. This is the third consecutive auction in the last two weeks in an unusual period of the year. The Ukrainian Ministry of Health corrected the forecast for exports of wheat from the country to 17.3 million tonnes.

Soybeans prices - yesterday soybeans prices in Chicago dropped by 9-11 cents / bushel. In the coming days rainfall is expected in the Middle West. News on biofuels standards are also expected. Export sales of soybeans from the US last week were 200,000 - 400,000 tonnes of old crop + 150,000 - 350,000 tonnes of new crop. Sales of soybeans meal will be 50,000 - 300,000 tonnes and soybeans oil 8,000 - 40,000 tonnes. The dockers' strike in the ports of Argentina continues.

Corn prices - yesterday corn prices in Chicago fell by 1.5 cents / bushel. Export sales of US corn will be 550,000 - 750,000 tonnes of old crop + 100,000 - 300,000 tonnes of new crop.