EUR/USD index went down to 1.1406. WTI crude oil rose to 46.08 USD/barrel.

It would be a "big challenge" for the United States to achieve the 3 % economic growth target set by the President Donald Trump. This was announced today by the US Federal Reserve chief Janet Yelton in front of the Senate. Trump promises growth of 3 % per  year, as is the average rate for the past 70 years. According to Fed,Congress Budget Office and other organizations, however, the aging population and declining productivity mean that the economic potential will shrink to about 2 % or less.

Improved weather forecasts for the United States have led to the withdrawal of the risk premium for the prices of all crops. USDA's July report was also a major factor in the fall in prices. In the coming days, temperatures in the US Midwest will be lower than originally expected, and the warming period will be lower. Over the next 10 days, the areas with the most severe droughts will fall from 20-25% to 10-15% of all areas. This happened after the unexpected rainfall this week. They are not massive, but in many places they have improved the soil moisture, although temporarily. However, corn and soybeans benefit from this. For Missouri for example, rainfall ranged from 25 to 150 l / sq. M. North Dakota accounts for 72.4% of the area (+ 6.0% for the week), and 72.4% (+ 14.7%) for South Dakota.

Data on export sales of wheat and corn from the US prove to be very weak. Soybeans sales are decent but can not make a furor on the market.
In general, bears have returned to the markets so far. Will this be permanent or temporary? Rather, prices will recover, but everything will be there. Subsequent growth - hardly if yes, not soon.

However, analysts look for lower average yields of corn in the US. The USDA forecast of 170.7 bushels / acre seems unrealistic to almost everyone. Certainly, USDA analysts tend to reduce yields in the midst of vegetation, and the conditions are uncontested and controversial. MDA Weather Services gives the following average yields:
- Corn - 165.8 bushels / acre (170.7 USDA).
- Soybeans - 46.5 bushels / acre (48.0).
- Spring wheat - 35.0 bushels / acre (40.3).

With these yields, corn crop should be 351 million tonnes, and soybeans 113 million tonnes. Exactly such yields are needed to maintain stable price levels from the beginning of the week.

Another decrease in wheat crop in the EU is a fact. Strategie lowered the crop by 0.9 million tonnes to 140.7 million tonnes, which is 5 million tonnes more than last year's result. The cause of the correction is the drought in Spain and France. The total wheat crop in the EU will be 149.3 million tonnes, which is only 3.3 million tonnes above the 2016 production. Barley crops are down by 0.5 million tonnes to 58 million tonnes, down by 2.5 million tonnes below last year's level. The harvest of corn will be 58.8 million tonnes (-1.2 million tonnes and 60 million tonnes). We have a good reason to believe that corn will be little  in the EU. Given that it is dry in Ukraine, then the corn crop will not be brilliant.

We may think that the USDA July report will suffer serious adjustments in the coming months.

Soybeans price - yesterday soybeans prices in Chicago dropped by 39.5 - 46 cents / bushel. The China-US agreement for soybeans purchases had little impact on the market. In the week 30.06.2017 - 06.07.2017  US soybeans export sales are at 228,041 tonnes (+ 55.7% and -25%) + 455,000 tonnes. Exports of US soybeans in the week are 407,368 tonnes. The biggest buyers were Pakistan, China and Indonesia. Sales of soybeans meal were 140,715 tonnes, with most of the new crop and 16,164 tonnes of soybean oil. In the first half of the year, 44.81 million tonnes of soybeans were imported into China, 14.2% more than last year. China has agreed to buy 12.53 million tonnes of soybeans from the United States, which is shaped as a traditional deal. However purchases would have been made without this agreement. Usually, after signing it, there are several big soybeans deals.

Corn price – yesterday, corn futures in Chicago fell by 15 to 15.75 cents / bushel. Export sales of US corn were 161,048 tonnes + 279,660 tonnes. Exports reached 880,507 tonnes. The biggest buyers were Mexico, Japan and Spain. China sold 628,009 tonnes of corn from its state reserve. According to data from the Buenos Aires Grain Exchange, 55.5% of corn is harvested in Argentina, which is only 2.5% more than the previous week.

Wheat price – yesterday wheat price in Chicago fell sharply. Export sales of wheat from the United States were 357,702 tonnes. Wheat exports reached 475,310 tonnes. The biggest buyers were Japan and the Philippines.
Certainly, US wheat and corn sales are low. New crops are selling quite hard.