The EUR/USD currency pair decreased to 1.1833. The price of US WTI crude oil fell to 73.13 USD/barrel.

The United Arab Emirates (UAE) has reached a preliminary agreement to resolve its dispute with the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+). Under the agreement, the Gulf country will receive a larger production quota.

Yesterday, CBOT SRW September wheat futures prices rose by 20 1/2 cents to close at $6.54 1/4 a bushel. Much of the uptrend is due to drought in spring wheat areas in the United States and Canada. Serious changes are not expected in the next 2 weeks. We are likely to see a reduction in forecasts for the world's wheat production due to the fact that yields in Russia are below expectations. In Russia, 2.46 million hectares of wheat were harvested at an average yield of 3.28 tons/hectare compared to 5.43 million hectares in 2020 and an average yield of 3.36 tons/hectare at that time. In its July report, the USDA estimated the average wheat yield in Russia at 2.93 tons/hectare (2.98 tons/hectare in 2020). At the same time, good rainfall in Australia gives an excellent start to the new wheat crop. The wheat production in France is expected to increase significantly, which will increase the ending stocks of wheat in the country for the new season to 3.68 million tons, which is the highest level of ending wheat stocks since 2013/14.

Yesterday, the prices of December corn futures in Chicago went up by 18 cents to close at $5.58 3/4 a bushel. Prices are rising for the third day in a row. The net long position of corn in Chicago is about 200,000 contracts compared to 400,000 contracts two months ago. 65% of crops in the United States are in good and excellent condition. The market is quite unstable and we can expect anything. However,  precipitation over the next 30 days remains a crucial factor for market development. The strong performance of wheat and soy markets supported the corn market. A private analyst forecasts an average corn yield in the United States in 2021 of 172 bushels/acre, compared to the current USDA forecast of 179.5 bushels/acre. New estimates of a poor corn crop in Brazil are also supportive for the corn market. In the week ended 09.07.2021, ethanol production in the United States reached 1,041 million barrels per day, which is 26,000 barrels per day less than the previous year. Stocks fell by 15,000 barrels per week to 21,134 million barrels. Rabobank forecasts that corn exports from Brazil will reach 21 million tons in 2020/21, which is 12 million tons below the previous estimate. So far in Brazil, 20.9% of the corn areas have been harvested (-15% compared to last year).

Yesterday, Chicago November soybean futures prices increased by 31 1/2 cents to close at $13.83 1/4 a bushel. Yesterday, rapeseed prices in Paris fell sharply. The declines are associated with expected moderate rainfall in the Canadian province of Alberta. However, these rains are not decisive. Private analysts forecast a canola production in Canada of 16 million tons compared to 20.2 million tons in the July USDA report. The average soybean yield in the United States is unlikely to reach 51 bushels/acre, given that 10% of crops are in poor condition. We need to monitor the situation closely, because the next 30 days will be the critical for soybeans. Analysts expect that 4.35 million tons of soybeans were processed in the United States in June. Authorities in Brazil have raised the requirement for the content of the biocomponent in biodiesel from 10% to 12% compared to the originally planned 13%.