EUR/USD decreased to 1.1811. WTI crude oil went down to 48.94 USD/barrel.

Australia's central bank expected to leave the basic interest rate unchanged. Since August last year the interest rate is 1.5%. According to the regulator, the strong Australian dollar will continue to contribute to weak inflationary pressures. "Moreover, the strong currency weighs on the prospects for GDP and the employment. An increase in the exchange rate is expected to lead to slower economic activity and lower inflation than is expected now, "the bank said. "The Australian central bank's comments on the dollar may signal that the strong currency is slowing economic growth," said Andrew Tyeshurst, CEO and interest strategist at Nomura Australia.

August started with a sharp decline in soybean prices. USDA raised its ratings for the crops on Monday and Tuesday, the market response was immediate. In good and excellent condition there are 59% of the soybean crops in the US, which is + 2% more than the previous week. That was enough for the fall in prices yesterday. Forecasts of normal seasonal temperatures for the next 10 days in the US corn belt were also a factor in price declines. Given the improved soybeans estimates, any rainfall - even casual - will be a strong signal for higher yields and hence lower prices. For corn the good and excellent estimates were down by 1% to 61%. The change as a whole is negligible, but it dropped out of the view of the analysts.

From Benson Quinn Commodities put the average US corn yield at 160-165 bushels / acre. Merchants, however, believe that even at a yield of 160 bushels / acre and the current level of stocks that are very high, the corn  price  in Chicago should not exceed $ 3.75 / bushel.
Now USDA forecasts that the average US soybeans yield will be 48 bushels / acre. Given the current situation with assessments and weather perspectives, we can not reduce yields by more than 46 bushels / acre. There is evidence that the Chinese authorities will start selling soybeans from the state stocks to meet the high demand from consumers and to limit port problems in the supply of imports.

Prices of corn and wheat futures also dropped. Merchants believe that in order for the demand for wheat from the US to be active, crop prices should no longer decrease - the current levels are low enough.
From Australia came the news that rainfall in South Australia, Victoria, New South Wales and Queensland is expected in the coming days. As  quantity the rainfall will not be enough to overcome the drought, but it will still be a relief for the crops.

Overall, the situation appears to be unstable, but with a slight predominance of the factors decreasing the crops. How it all changes with one rainfall in the US and Australia !!! This time we do not mention the EU and the Black Sea region because there are no major changes here,  i.e. everybody gets a good wheat crop.

Wheat price– yesterday wheat futures prices in Chicago fell by 8 to 13.5 cents / bushel. Japan is on the market with its usual weekly auction looking to buy 132,925 tonnes of wheat from the US, Canada and Australia. Analysts at the Russian IKAR Institute have increased their forecast for wheat crops in the country in 2017 with +2 million tonnes and now the range of expectations is 74 - 77 million tonnes - a huge crop !!!!

Soybeans price– yesterday soybeans futures in Chicago collapsed by 23-35 cents / bushel. The decrease was due to a precipitation forecast in the country's corn belt within 38 - 75 l / sq.m.

Corn price– yesterday corn futures in Chicago fell by 5.75 - 8.25 cents / bushel. USDA reported a new export of US corn to Colombia - 100,000 tonnes. In June, US used 11.09 million tonnes of corn for ethanol production , which was by 3.48% less than May, but 2.14% more than in June 2016. The USDA attaché in China predicts that the corn crop in the Asian country will be 210 million tonnes, 4% less than 2016. This week the authorities in China will offer for sale 3.47 million tonnes of corn..