EUR/USD fell to 1.1894. The WTI crude oil rose to 50.41 USD/barrel.

FED announced that it will start shrinking its assets to $ 4.5 trillion from October. dollar, focusing on removing one of the pillars of support for the economy since the time of the financial crisis. The central bank continues to predict another interest rate hike this year, indicating that damages caused by the storm will only have a temporary effect on the economy. FED left the interest rate unchanged at its current level of 1-1.25%.

The market's attention is increasingly focused on the drought in Brazil. In the last three months, large parts of the country have not received any rainfall. The sowing of corn and soybean in Brazil is postponed until it starts raining.

USDA announced an export sale of 960 000 tonnes of soybean, current crop and 120,000 tonnes of 2018 – 2019 crop.

In the US, the harvest of soybeans and corn goes off. The data is still not disappointing for the yields. Something that was expected from analysts considering the precipitous rainfall during the season. The USDA forecasts for the yields appear to be realistic.

Yesterday, the wheat in Chicago showed the strongest rise. The problems of Australia (drought) and Argentina (many rainfalls) are in the focus of traders. Separate logistical problems in Russia and rising prices there are also prerequisites for the entire sector in the world to gain strength and raise values. For Australia, it is estimated that wheat export will reach 18 million tonnes and that of a highclass - 14 million tonnes. So demand for quality wheat will have to be directed to another part of the world, but where ???? In the EU, the US and Canada, quality wheat is not enough!! Then to the Black Sea region and what's available there !!!!

Wheat harvest in Russia is progressing and less than 20% of the crops are not harvested yet. Up to now, 78.2 million tonnes of wheat are harvested at an average yield of 3.44 mt/ ha (2.9 mt/ ha in 2016). In the central parts of the country the yields are 27% higher than last year, along the Volga with + 27% and around the Urals + 12%. This makes us think that the USDA forecast for wheat crop in Russia of 81 million tonnes is underestimated. The question is how many of this wheat will reach the global markets.

On the other side, the low prices of wheat will force farmers in the EU and the United States not to sow large areas of it but to seek alternatives.

Yesterday, corn futures in Chicago rose 1.25 - 1.75 cents / bushel. In the past week, ethanol production in the United States decreased by 14,000 barrels per day to 1,033 million barrels per day. Stocks of ethanol grew by 6,000 barrels a week to 21,138 million barrels. Export sales of US corn are expected to be within 700,000 - 1,000,000 tonnes last week. Chinese authorities sold only 11,878 tonnes of corn from the proposed 226,740 tonnes.

Yesterday soybean prices in Chicago rose 3.25 - 4.25 cents / bushel. USDA announced export sales of US soybean - 960,000 tonnes of current crop, unknown destination, 120,000 tonnes of 2018-2019 crop, an unknown destination, 132,000 tonnes of soybean from current crop for China. The sale of 1.08 million tonnes of soybean is the ninth achievement in the history of the reporting system for these deals. Export sales of US soybeans are expected to be 1.2-1.5 million tonnes, soybean meal 75,000-250,000 tonnes and soybean oil 0-30,000 tonnes.

Yesterday wheat futures in Chicago rose 6 - 6.75 cents / bushel. Export sales of wheat from the US will be 300,000 - 500,000 tonnes. Some analysts expect the wheat crop in Canada during the season to be in the range of 27-29 million tonnes.

These are currently the factors impacting the markets. It seems there is positive news related to drought and hence to rising prices. However, these signals remain so weak so far and impact the market very, very slightly at the moment. Tightening monetary policy in the US and the EU was expected. It tightens one of the taps for the rise of prices- liquidity. We will have to get used to the new environment.