EUR / USD index rose to 1.1349. WTI crude oil rose to 44.24 USD / barrel.

The Organization of Petroleum Exporting Countries (OPEC) will not hurry with further cutbacks in oil production or eliminate the "exceptions" for output volumes in some countries, oil ministers of five OPEC countries have said, meeting on July 24th in Russia to discuss the steps to support the market. But the news has caused a sharp drop in oil prices. The reason is that many investors expected a reduction in production in order to be able to withdraw the surplus of oil more quickly. The price has fallen on the backdrop  of the news on the increase of production in the US, Nigeria and Libya , the latter two being exempt from the cut-off agreement.

Yesterday the US currency has fallen sharply. This helped the commodities to raise their prices, including some of the agricultural ones. The US dollar fell 1% against the basket of currencies and reached the lowest level in the last nine months. This facilitated the performance of dollar-denominated assets. The ECB has signaled that it may have followed a stricter monetary policy and hence the euro has appreciated. Wheat in Minneapolis reached delivery in September from 6.9 USD / bushel, the highest level since June 2014. In South Dakota 12% of spring wheat crops are in good and excellent condition (1% decline per week) and in North Dakota 39% (-3%). In Montana the indicator is 22%, which is the lowest level since 1986 until now.

Yesterday the soft wheat in Paris fell slightly despite the appreciation of the euro. The forecast for French wheat crop was reduced by 1.6 million tonnes to 35.6 million tonnes. In 2016 the crop was 28 million tonnes, and in 2015 -over 41 million tonnes. The first results for the quality of French wheat are good, but the yields are very variable.
Corn and soybeans ratings in the US are lower than market expectations. The last rainfall has left very dry areas, ie. they were not massive. Rainfall exist, but their distribution will be important. Also, how far will the temperatures rise in early July.

The stress from the high temperatures passed over France and Ukraine has not yet attracted the attention of the markets. In France it has already cooled down, and the same thing will happen at the end of the week in Ukraine. Precipitation in France is minimal, and in Ukraine they are missing at all. At the end of next week temperatures in France will again exceed 30 degrees. There is more to think about declining of the yields of all crops there. In the US temperatures above +30 degrees, even over +35 degrees, are expected.
MARS again lowered its forecasts for wheat, barley and corn yields in Europe.

Nothing is written about Russia except that the wheat crop is expected to be great. In the new agricultural year (01.06.2017 - 30.06.2018) IKAR expects that the wheat crop in Russia will reach 66-71 million tonnes. However the outcome depends on the weather until September. From the current point of view, if the forecast is to change, it would be up. The current forecast for grain crops in Russia is at the level of 111 - 116 million tonnes. The indicators are quite high.

From Ukraine came the news about the first sunflower prices announced by the processors. For the beginning of this season they are 380 - 385 USD / tonne factory price. The price is quite high and it seems almost unlikely to be given for sunflower at the start of the campaign.

Soybeans price - yesterday Chicago soybeans futures rose by 2.25 - 4.75 cents / bushel. Soybeans ratings in the US remain relatively stable. Canada's Bureau of Statistics is expected to show an area of canola in the country of 8.98 million hectares at a forecast from April of 9.06 million hectares. Soybeans areas will be 2.83 million hectares (2.82).
Corn price - Yesterday corn futures in Chicago rose to a minimum. During the week in the US corn belt there will be rainfall.

Wheat price - yesterday wheat futures in Chicago rose by 1 - 4.25 cents / bushel. The wheat protein premium of 12% is within 1.68 - 1.78 USD / bushel. Area of wheat in Canada is expected to be 9.19 million hectares (9.38).