EUR/USD index rose to 1.1811. WTI crude oil rose to 48.39 USD/barrel.

The growing production in Libya are causing  headaches to OPEC, which, along with other producers like Russia, are making efforts to shrink the supply and thus boost prices. Libya has made an exception to the agreement to reduce the output. "Oil market attitudes remain bearish because of fears of oversupply and the possible failure of the OPEC deal," said Luckman Otunuga, an analyst at FXTM. The next ministerial meeting from OPEC and countries outside the cartel is expected on September 22nd.On Tuesday, the US Oil Institute said oil stocks fell by 3.6 million barrels in the week to 18 August to 465.6 million barrels. Gasoline stocks, however, rose by 1.4 million barrels, and a decline was expected. According to Geoffrey Halli, senior OANDA market analyst, rising gas stocks are not a good signal at the height of the US season when it's driving the most, and when fuel demand is usually high.

Yesterday, US market attention was focused on a new hurricane that will appear on Friday on the Texas coast. It is expected to pass through Louisiana and the Mississippi downstream. Cotton crops will be threatened.
The United States will impose import duties on biodiesel produced in Argentina and Indonesia, which is likely to be 40-68%. This will stop importing this product. Some analysts believe that the duty will be around 20%. Production will have to be satisfied with local soybeans oil. There is also some theoretical chance for US authorities to lower the biodiesel consumption mandate.

For corn - in the past week, ethanol production in the US has been reduced by 7,000 barrels per day to 1.05 million barrels. Field tests in the Midwest of the United States continue, with results going on Friday.
China cancels a large volume of contracts to supply US soybeans from the current crop - 640,970 tonnes. China still has contracts to supply 1.4 million tonnes of US soybeans from the 2016-2017 crop. Up to now, it was believed that China would transfer all supplies to the next season, but it does not.
USDA announced two export sales of soybeans for 11,200 tonnes from 2016 to 2017 and 284,000 tonnes from crop 2017 - 2018. This somewhat calmed the market.

Most likely spring wheat in the US will be less than forecasted. In Canada, we are expecting new decreases in wheat crop. In France, prices remain high and exports are declining. Advantage is that grain quality is good, unlike Germany. In the Black Sea region, wheat is very much. Perhaps by 10 million tonnes over forecasts from 2 months ago. We can expect that Russian supplies will run out after 2 - 3 months - not quite sure, but less expensive lots. Separately there will be logistical problems. This will direct the demand to Romania, Bulgaria and France.

The following months look more optimistic for the corn. The weaker crop in the US, the expected weaker crops in South America in 2018 will create tension conditions - not shortages but supply problems. Corn imports into the EU will be higher this season. Hardly, however, corn will pull the wheat market, because it will not have large deficits. This may be in 2018 - 2019, but perhaps.

According to the Chinese Customs, in July 2017, Imports of corn in the country reached 910,000 tons at 383,090 tons in June and only 28,980 tons in July 2016. The result is the fourth largest for the month in the history of observation. Imports of corn in China are rising after the authorities announced a forecast that the crop  in 2017 will fall, which has triggered a rise in prices. We can not expect a corn revolution in China, but signals are encouraging and supportive of the market - if there is no other strong news.

Yesterday wheat futures in Chicago remained stable. Export sales of wheat from the US are expected to reach 300,000 - 600,000 tonnes at 633,565 tonnes a week earlier. In France, over 96% of the wheat crop will have  protein content of over 11.5%, compared to 92% last year. About 11% of the grain has  protein of over 13%.

Yesterday soybeans futures in Chicago rose by 2.25 cents / bushel. Export sales of US soybeans are expected to range from 250,000 to 450,000 tonnes of old crop and 450,000 to 600,000 tonnes of new crop. Sales of soybeans meal will be 75,000 - 250,000 tonnes and soybeans oil 8,000 - 40,000 tonnes. In July, China imports 10.08 million tonnes of soybeans, which is 29.92% more than in July 2016. From this quantity, 499,922 tonnes of soybeans are from the US, which is above the level of July 2016.

Yesterday, corn futures in Chicago declined by 2.75 - 4.5 cents / bushel. In the week ended on 18.08.2017 the ethanol production in the US was 1,052 million tonnes or a drop of 7,000 tonnes from the previous week. Ethanol stocks in the country declined by 319,000 barrels to 21,506 million barrels. Export sales of US corn are expected to amount to 50,000-250,000 tonnes of old crop + 400,000-700,000 tonnes of new crop. The field tests show average yield of corn  in Nebraska of 165.42 bushels / acre, which is nearly 3 bushels / acre above the average for the past three years.