EUR/USD index dropped to  1.1741. WTI crude oil increased to 47.73 USD/barrel.

Oil prices stabilized on Tuesday after the previous session had sharp drops to a 3-week bottom. The appreciation of the dollar and weakened activity of Chinese refineries led to downsizing. In the seventh month of the year, Chinese refineries processed 10.71 million barrels a day, the National Statistical Office report said. This is about 500 thousand barrels less than in June and the lowest level since September 2016. Data comes on the backdrop of the fears that the oversupply can lower oil demand, which in its turn reduces the chances of shrinking the reserves  below the 5-year average. This, in its turn, will put additional pressure on prices.

Yesterday commodity markets moved mixedly. In Chicago the downturn continued - data from the USDA August report are still running. The report on the condition of corn and soybean crops in the United States was also affected. Its data proved contradictory with the expectations of other analysts. The condition of the corn improved, which was not expected. Rainfall in the Midwest of the United States is very uneven. It is difficult to determine when and where they are sufficient to enable the crops to show their full potential. The harvest of winter wheat in the US is almost over, the grain is in the warehouses - it should be sold. In France, harvesting of winter wheat is coming to an end. Grain quality is good, and exports are doing well.

The great unknown factor now is what the Russians will do. Their  wheat crop is enormous, whether they will be able to export 31.5 million tonnes of wheat during the season. In July, wheat exports are not exceptional. We expect the August data, but the forecasts do not indicate significant growth. Over the past year, just over 27 million tonnes of wheat exported demanded a continuous load on the infrastructure and queues by buyers. Would the wishes now be more than then?

According to experts from Rusagrotrans, the total grain crop in Russia in 2017 will reach 127-129 million tonnes at a previous estimate of 118.3 million tonnes. Wheat crop will be 78-80 million tonnes at 74 million tonnes in the previous forecast, barley 18.5 - 19 million tonnes (18) and corn 16 - 16.5 million tonnes (15.5). According to ProZerno, the new grain crop will be 122 million tonnes, incl. wheat 74 million tonnes.

Indonesian millers have bought 25,000 tonnes of hard spring wheat from Canada in the last days, with a delivery in November at a price of 320-325 USD / tonne C & F. Australia already offers wheat from the new crop with 10.5% protein on the Asian market at a price of 240-245 USD / ton C & F. Black Sea wheat is available in Asian ports, which can accept PANAMAX class ships at $ 215 / tonne C & F.

Today there is an auction held by the Egypt's state-owned company. Prices of American, French and Black Sea wheat are almost flattened. Interestingly, it will be who will lower their bids enough to get a deal.
The news of the past two days is not much and they all are related to the news from the previous week.

Yesterday corn futures in Chicago fell by 4.5-8 cents / bushel. Brazil's first ethanol production plant has been set up in Brazil to process only corn. This will prove that the industry's progress is not only due to the sugar cane. China plans to sell 1.2 million tonnes of corn crop in 2013 and 2014 from its state reserves on Thursday, and on Friday will offer another 803,800 tonnes.

Yesterday wheat futures in Chicago fell by 10 to 13 cents / bushel. The market is under the influence of the Russian wheat crop and the hesitations to what extent the export of 31.5 million tonnes can be realized. Taiwan is looking to buy 98,850 tonnes of wheat from the United States. Today we are expecting data from the auction in Egypt, which will be extremely interesting and disputed.

Yesterday soybeans futures in Chicago declined by 11 - 15 cents / bushel. The decline is taking place against the backdrop of slightly deteriorated the crop conditions in the United States. USDA announced a private export sale of 132,000 tonnes of soybeans to China and an unknown destination. Soybeans is a new crop. In the United States, 3.94 million tonnes of soybeans were processed , 0.7% more than in July 2016 and 4.18% more than June 2017. It should be noted that in June 2017 there was a sharp decline in soybeans processed in the US. From the beginning of 2017 until 14.08.2017 from Brazil were exported 53.37 million tonnes of soybeans, which is 3.5% more than the same period in 2016. The record high was set in 2015 - 54.3 million tonnes.

Following the USDA report last week, markets have fallen into a situation that can not be changed by any news. The shock from the data seems to have passed, but there is no power for something new.