EUR/USD index went down to 1.1891. WTI crude oil dropped to 45.97 USD/barrel.

The growth of the US economy in the second quarter was revised upwards, marking the highest rate for more than two years. There are also indications that the inertion remains at the beginning of the third quarter. US GDP is expanding at an annual growth rate of 3% between April and June, according to the second reading of the Ministry of Trade data. Initial calculations showed a value of 2.6%. Consumer spendings, which generates more than two-thirds of GDP, rises by 3.3 %, the fastest pace in a year. The first reading showed growth of 2.8 %. The cost of business equipment jumped by 8.8 %, the fastest pace since nearly two years. Trade adds 0.2 percentage points to growth, not 0.18 points, as previously estimated.

In general, the Hurricane Harvey will not cause significant damage to corn and soybeans crops in the United States. Problems focus on the cotton. In the United States there is a downward pressure on prices, which is related to the near-drowning of harvesting of corn and soybeans. On the other hand, the sales made before are now pricing and this further pushes the market.

In August, the soybeans price in Chicago declined by 7.4%. However, soybeans has found support from the strong Chinese demand. The last major export sale is 131,000 tonnes of new crop soybeans. China continues to be a strong buyer, despite the large supply of soybeans in the world and the prospects for it to remain so in the coming months. Soybeans demand in the US is good.
For corn, the demand is slightly less remarkable. In the past week, ethanol production in the country declined by 10,000 barrels per day to 1.04 million barrels per day.

Analysts are on the opinion that the USDA will lower its forecast for US corn and soybeans production to the level of 166-168 bushels / acre for corn and 47.5-49 bushels / acre for soybeans. Declines are not drastic, crops remain good, and these changes are already reflected in prices.
We are already looking at 2018. The first forecasts suggest that US corn areas will rise compared to 2017 with 1.9 million acres to 92.8 million acres, and soybeans will drop by 3.4 million acres to 86.1 million acres. It is estimated that soybeans is becoming much in the world and price collapse is possible.

For wheat in the US nothing new. There is a tendency in Russia to raise the ruble by 0.5% against the dollar. Thus, Russian exports will reduce its competitiveness. However, this is something minimal and prices can adjust currency movements. In connection with this, wheat in Chicago rose yesterday as a consequence of Russia's movements, as well as the weakening of the euro.
Particular attention is paid to the data from Canada on the volume of wheat and rapeseed crops. Analysts consolidate around 26.2 million tonnes of wheat at 26.5 of USDA.
There are also problems in Argentina, where much rainfall will slow down the sowing of corn. .

The Russians started the season with a weak export, but they are gradually gaining strength, but the levels that are expected of them are not yet reached. They must be reached because otherwise exports of more than 30 million tonnes will remain a wish. The orders from Egypt are at the heart of the export now. From the beginning of the season until 21.08.2017, 5.7 million tonnes of wheat have been exported from Russia. We are definitely waiting for logistical problems in Russia, we are also expecting price rises and uncompetitive offers. Analysts are already realizing that Russia will produce around 75 million tonnes of wheat from now on. Improvements to infrastructure will therefore be needed. Otherwise, domestic stocks will grow seriously - as in the current season - over 15 million tonnes. Since the beginning of the season, Egypt has purchased 2.91 million tonnes of wheat, incl. 1.96 million tonnes from Russia. At the last auction, the price of Russian wheat was around 186 USD / tonne at 195.69 USD / tonne for the French. Separately, the cheaper Russian fracht. French exporters are now focusing on deliveries to Algeria, but in October - November they will have to lower prices to compete with the Russians.

Yesterday wheat futures in Chicago rose by up to 3 cents / bushel. Export sales of wheat from the US are expected to be between 300,000 and 600,000 tonnes. Canada's Bureau of Statistics is expected to lower its forecast for wheat crops to 26.2 million tonnes at 31.72 million tonnes in 2016.

Corn futures fell yesterday in Chicago by 2 - 4 cents / bushel. During the week ending on 25.08.2017 the ethanol production in the US dropped by 10,000 barrels per day to 1,042 million barrels. Ethanol stocks in the country fell by 206,000 barrels to 21,303 million barrels. During the week, the corn used to produce ethanol was 2.78 million tonnes. Export sales of US corn are expected at 0 - 200,000 tonnes of old crop + 400,000 - 700,000 tonnes of new crop.

Yesterday soybeans futures in Chicago declined to 7.75 cents / bushel. The USDA reported a private export sale of 131,000 tonnes of soybeans to China. Sales of new crops are expected to be 1-1.5 million tonnes. Sales of soybeans meal will be 105,000 - 310,000 tonnes and soybeans oil 8,000 - 35,000 tonnes. Canola crop in Canada is expected to be 18.6 million tonnes at 18.42 million tonnes in 2016. The soybeans crop will be 7.9 million tonnes (+ 22.29%).