EUR/USD index rose to 1.1994. WTI crude oil went down to 49.39 USD/barrel.

US shale production is set to report growth for the tenth consecutive month in October, the government said late on Monday. It is expected that production from seven shale deposits will grow by nearly 79,000 barrels per day to 6.1 million barrels per day, the US Energy Information Administration said in its monthly report. Some price support comes from data showing that Saudi exports dropped to 6.693 million barrels per day in July from 6.889 million barrels per day in June.

Brazil's rainfall is expected next week, and it soothes the markets. Finally, the sowing of corn and soybeans can be carried out normally at high speed.

The two largest producers of wheat in the southern hemisphere - Australia and Argentina are experiencing different difficulties this season. In Australia,the drought has significantly lowered wheat crops and is now estimated at around 20-21 million tonnes. There are analysts who do not share the USDA forecast for wheat exports from Australia to a volume of 18.5 million tonnes. Their forecasts indicate a level below 14 million tonnes. For one day, the FOB price of Australian wheat increased by 1.3%, and by the beginning of the month by 9.5%. Russia's wheat prices have risen in the last two week.

In Argentina, on the contrary, the crop is valued at about 17 million tonnes and is now ready to be harvested. However, the  long-lasting rainfall degrades its quality. In the next 10 days, the expected rainfall will further affect quality, but a decline in the amount of crop from excess moisture is already expected.

The recent satellite-based surveys show that wheat crops in Canada will be 27.13 million tonnes, much above the recent estimates of 25.54 million tonnes. The rapeseed crop will be 19.71 million tonnes (18.2).

Yesterday, Egypt bought 175,000 tonnes of Russian wheat at a C & F price of 210.50 - 213.25 USD / tonne. The prices are 4 - 11 USD / tonne higher than the previous auction because of the problems with the delivery of the two lots of French and Romanian wheat. Now the bids of the auction were 6 at normally 15.
The drought also affects the prospects for the crop 2017-2018 of canola in Australia, according to Abare's latest report. The crop can be reduced to a minimum for the past 7 years - 2.75 million tonnes. In 2016 - 2017 the crop was 4.4 million tonnes.

The demand for US corn remains weak due to strong competition from South America. In the first two weeks of the new season, export shipments were 1.35 million tonnes at 2.93 million tonnes a year earlier. The corn export commitments in the last Thursday report are the second lowest for the past 11 years. This will accumulate in the coming weeks until it has led to a shift in the markets, and it is serious.

Yesterday soybeans futures in Chicago declined by 2.25 cents / bushel. Canada's Bureau of Statistics estimates the canola harvest in the country at 19.7 million tonnes, which is only 0.5% below the crop in 2016. The areas with this culture are record high, but average yields have fallen by 5 bushels / acre to 38.1 bushels / acre.
Wheat futures fell yesterday in Chicago by 4 - 5 cents / bushel. The wheat cropt in Canada will be 27.1 million tonnes, which is above the USDA forecast. The durum wheat crop will be 4.3 million tonnes.

Yesterday corn futures in Chicago fell by 2.75 - 3.25 cents / bushel. The corn crop in Canada will be 14.31 million tonnes (+ 8.5% over last year). Authorities in China have sold only 5,000 tonnes of corn from the proposed 231,740 tonnes of the state reserve.