EUR/USD index went down to 1.1350. WTI crude oil decreased to 45.65 USD/barrel.

Oil was traded tightly on Wednesday, with prices influenced by the sequental rise in OPEC supply, reports Reuters. According to Thomson Reuters Oil Research, exports from the OPEC countries increased for the second consecutive month in June, despite the cut-off agreement. OPEC exported 25.92 million barrels a day in June, up by 450,000 barrels a day than May and 1.9 million barrels a day more than a year earlier. Meanwhile, North Korea has made another missile experience, and another factor that does not allow prices to fall much is the political crisis between Qatar on the one hand and the alliance of other Arab states headed by Saudi Arabia on the other.

Yesterday the market put the sellers in their seats. The Egyptian state-owned GASC bought 350,000 tonnes of Russian wheat and 60,000 tonnes of Romanian wheat. The auction also featured US wheat with a FOB price of 255 USD / tonne. The lowest bid for Russian wheat was 197.97 USD / tonne. The difference is enormous and prices will definitely have to react in some way. Given that in the Black Sea region wheat supply is likely to be great, it follows that US wheat prices have outpaced their time.

Yesterday it became clear that Algeria had purchased 420,000 tonnes of wheat mill at a price of 213.75 - 216 USD / tonne. One day two North African countries bought 830,000 tonnes of wheat, which is a very good achievement.

Analysts note that wheat crops in the western parts of Kansas and eastern Colorado have higher levels of protein. This is a sure sign that the premium between soft and high-protein wheat will drop. Still the session yesterday ended with a rise in prices caused by the drought concerns in the northern states and a decline in harvest potential. Above normal temperatures (up to +35 degrees) will be observed over the next 15 days and rainfall will not occur. About 2/3 of the US spring wheat  and about half of that in Canada are undergoing prolonged stress.

Drought begins to be observed in the US corn belt. In the last 45 days rainfall in parts of Iowa and Illinois was at 50% of the norm. Soon in these states, corn pollination will start and will require more rainfall. Certainly the clarity about the new major US corn crop decreases and the precipitation will be determining in July.

Markets are gradually reassuring and we will see a new balance at other price levels. We can expect that wheat prices in the Black Sea region will rise in the coming weeks by 5-10 USD / tonne.

Wheat price - Yesterday wheat futures in Chicago rose by 2 - 6 cents / bushel. Winter wheat in the US is harvested on 53% of the area at 54% on average for the past five years. In  good and excellent condition of spring wheat are 37% of the crops at 40% a week earlier and 72% a year earlier.

Soybeans price - Yesterday soybeans price in Chicago rose by 11 - 14 cents / bushel. In 2018 in the US 4.24 billion gallons of biodiesel should be used, which is slightly below the level of last year. In a good and excellent condition in the US are 64% of the areas with soybeans at 70% a year earlier. In June 9.197 million tonnes of soybean were exported from Brazil, which is 16% more than May and 18.5% more than June 2016.

Corn prices - Corn futures rose yesterday in Chicago by 3.5 - 5 cents / bushel. In good and excellent condition are 68% of the corn areas in the US at 67% a week earlier and 75% a year earlier. In May 11,491 million tonnes of corn was processed in the United States, 2.6% more than April and 6.3% more than May 2016. In 2018 in the US at least 15 billion gallons of ethanol will be consumed. In June, Brazil exported 1,007 million barrels of ethanol, which is 91.41% more than May, but 38% less than June 2016.