The EUR/USD currency pair decreased to 1.1866. The price of US WTI crude oil fell to 70.56 USD/barrel.

Oil prices have fallen slightly as investors weigh the risks surrounding the spread of the coronavirus delta, which is forcing a number of governments around the world to consider new social distancing measures to control the outbreaks.

Yesterday, CBOT SRW September wheat futures prices decreased by 5 cents to close at $7.24 1/2 a bushel. Rainfall is expected in the northern United States, but it will not affect yields because it is too late. Prices fell as a result of the fixed gains after the continued growth and the approaching August report of the USDA, which will cool the markets. In recent days, markets have reflected on the drop in the production in the United States, Canada and Russia. For the United States, things are pretty clear. In Canada, however, for the time being there is a slight fog with the possibility of a significant drop in the production. In Russia, a drop in the wheat production to 78.5 - 80 million tons has been reported, but yesterday a lower estimate came out. Japan is looking to buy 119,435 tons of wheat from the United States, Canada and Australia.

SovEcon lowered its forecast for the wheat production in Russia to 76.4 million tons from 82.3 million tons in the previous estimate. On Friday, Rosstat lowered its estimate for winter wheat areas in the country to 15.6 million hectares from 16.8 million hectares earlier. The areas with spring wheat are expected at 13.1 million hectares. As of July 2, 2021, 12.8 million hectares were harvested in Russia with wheat, 44.7 million tons of wheat were harvested at an average yield of 3.48 tons/hectare (3.66). The difference in wheat yield between the two years is widening. The Russians will keep export taxes for a long time. They will still export but not as much as in previous years. Some analysts are extreme and believe that the reduction in the wheat productions of Canada and Russia could reach 20 million tons.

Yesterday, Chicago December corn futures prices fell by 7 1/2 cents to close at $5.51 3/4 a bushel. Estimates of the state of corn crops in the United States fell by 2 points on Monday. The question is whether good crops in the center and east will compensate for the decline in the west. At this time of year, there is no chance that corn crops that are in bad condition will improve significantly no matter how much it rains. Anything can happen and a lot depends on the rainfall over the next two weeks. Some analysts believe that a corn yield of 179.5 bushels/acre is not realistic, while others expect even higher yield. A supporting factor for prices is the poor production in Brazil. However, this is offset by the excellent corn productions in the EU, Ukraine and China. Barchart has raised its forecast for the average corn yield in the United States in 2021 from 178.6 bushels/acre to 180.3 bushels/acre. Thus, corn production estimate was raised by 4.17 million tons to 381.4 million tons. Yields in Iowa was raised by 3 bushels/acre to 199.8 bushels/acre. In Nebraska, corn yield was raised by 2 bushel/acre to 180.9 bushels/acre. Corn yield in Minnesota was increased by 2 bushels/acre to 205.4 bushels/acre. So far, American farmers do not sell much corn because the yields are not clear in some places. On the other hand, Brazilian consumers bought a record 3-5 million tons of corn from Argentina.

Yesterday, Chicago November soybean futures prices fell by 33 3/4 cents to close at $13.19 3/4 a bushel. The improved ratings of soybean crops in the United States are the reason for yesterday's drop. Another factor is the forthcoming USDA report for August. However, the decline yesterday was a surprise given the consistently high prices of palm oil. Over the next 10 days, there will be rainfall in the United States, but the forecast is on the verge of being good or insufficient. Next year, all producers around the world will try to produce more soybeans to take advantage of the high prices. Barchart has raised its forecast for the average soybean yield in the United States in 2021 from 50.44 bushels/acre to 51.03 bushels/acre. The soybean production is projected to reach 120.3 million tons. There are fears that China will import less soy due to reduced usage in feed. There are beliefs that Brazil would start active sales of soybeans to China in October with delivery in January 2022. It is important how big the Brazilian soybean production will be and at what stage it will be harvested. Currently, some Chinese processors are limiting their activities and may soon buy from the United States due to higher prices in Brazil.