The EUR/USD currency pair fell to 1.1783. The price of US WTI crude oil rose to 67.20 USD/barrel.

Oil prices have stabilized after falling to an eight-week low given the rising COVID-19 cases, raising concerns about short-term prospects for demand. The stronger dollar also weighed on crude oil price. OPEC+ has agreed to continue to gradually increase production but market analysts warn that the expected increases would not be enough to fill the looming supply gap.

Yesterday, CBOT SRW September wheat futures prices rose by 2 3/4 cents to close at $7.00 1/2 a bushel. Wheat prices in Minneapolis fell after reaching their highest level since November 2012 on Monday. US spring wheat ratings have fallen sharply again. The harvesting campaign of spring wheat is quickly approaching. Kazakhstan plans to limit the export of feed grain, including feed wheat due to the drought in the country and the expected low yields. Usually, the country exports 7-9 million tons of wheat per year. In Russia, areas with spring wheat remain dry. Russian farmers do not sell wheat now due to low domestic prices and problems with rainfall. During the week, Russia's wheat export tax was significantly reduced, which could boost wheat exports from the country. Over the past week, the prices of Ukrainian wheat have risen by up to 9 USD/ton, which is a signal that the Black Sea wheat is generally catching up with the prices of other exporters. An analyst lowered its forecast for the wheat production in Canada in 2021 from over 31 million tons to 27 million tons.

Yesterday, Chicago December corn futures prices increased by 13 1/2 cents to close at $5.65 3/4 a bushel. Prices rose after confirming the forecast for the last week of July - hot and dry weather throughout the US Corn Belt. The period coincides with the second half of the pollination stage of corn. The corn market was supported by the strong wheat market. CmdtyView raised its forecast for the average corn yield in the United States in 2021 by 2.11 bushels/acre to 178.59 bushels/acre. Their estimate for the corn production was also increased by 5.51 million tons. Temperatures have recently been low in Brazil, which also supported prices yesterday. Reduced Brazilian corn exports are causing greater demand in the United States, Argentina and Ukraine. For now, however, the price of American corn is higher and purchases from there are limited.

Yesterday, the prices of November soybean futures in Chicago went up by 15 3/4 cents to close at $13.88 1/2 a bushel. The forecast for less precipitation in the United States at the end of the month also raised soybean prices. CmdtyView increased its forecast for the average soybean yield in the United States in 2021 by 0.47 bushels/acre to 50.44 bushels/acre. Their soybean production forecast was also raised by 1.2 million tons to a total of 118.8 million tons. In June, China imported 10.48 million tons of soybeans from Brazil, which is slightly below the record of July 2020. Only 54,806 tons of soybeans were delivered from the United States. China is expected to return to the US market for soybeans from the new crop. So far, Chinese imports are not expected to decline due to their high domestic soybean prices of above $18/bushel. After the Argentine authorities reduced the requirement to mix the biocomponent in diesel from 10% to 5%, this allowed for about 500,000 of soyoil to be exported annually.

It rains over most parts of the United States and in some places it is too humid - Missouri and Illinois. In the western and northern parts, however, it has been hot and dry for weeks. Yield growth forecasts are a bit surprising, but local analysts see things best and we should trust them.

China expects a balanced domestic corn and pork market by the end of the year. This is supported by the good condition of corn crops, higher consumption of wheat for feed and the growing demand for meat.