The EUR/USD currency pair rose to 1.1875. The price of US WTI crude oil fell to 71.26 USD/barrel.

Oil prices have fallen given the growing tensions between Iran and the United States as investors weigh the risks associated with the spread of the coronavirus delta. Traders are paying attention to the spread of the highly contagious delta variant of the coronavirus in the Asia-Pacific region.

Yesterday, CBOT SRW September wheat futures prices increased by 25 3/4 cents to close at $7.29 1/2 a bushel. Prospects in major manufacturers such as the United States, Canada and Russia are declining, and from there prices are rising. As of August 1, 2021,  winter wheat was harvested on 91% of the areas in the United States (84% a week earlier and 86% on average for the last five years) and spring wheat has been harvested on 17% of the areas (3% and 8%). 10% of the spring wheat crops (9% and 73%) are in good and excellent condition. In the Canadian province of Alberta, 22% of spring wheat is in good and excellent condition. ICAR has lowered its forecast for the wheat production in Russia in 2021 by 3 million tons to 78.5 million tons - lower than expected yields. According to Rusagrotrans' forecast, the export potential of Russia is estimated at 47.8 million tons in 2021/22. The total grain production will reach 127 million tons, including wheat production of 80.2 million tons. In Ukraine, wheat was harvested on 36.7% of the areas at an average yield of 4.45 tons/hectare. Canada's wheat production is expected to be below 21 million tons compared to the latest USDA forecast of 31 million tons. During the week ended on July 29, 2021, the export inspections of wheat from the United States were 387,743 tons (515,214 tons a week earlier and 556,987 tons a year earlier). Since the beginning of the season, total export inspections of US wheat reach 3.77 million tons (4.69). Turkey is looking to buy 395,000 tons of milled wheat and 515,000 tons of barley.

Yesterday, Chicago December corn futures prices went up by 14 cents to close at $5.59 1/4 a bushel. In recent weeks, wheat prices have risen by 1.4 USD/bushel and corn prices have increased by only 0.4 USD/bushel. Concerns about the state of corn crops in the United States and the weaker dollar were the key reasons for the growth in corn future prices yesterday. The weather forecast indicates that it will not rain in the entire US Corn Belt until Friday. Rainfall is expected in its eastern parts next week. As of 01.08.2021, 62% of corn crops (64% and 72%) are in good and excellent condition in the United States. In June, 11.17 million tons of corn were used for ethanol production in the United States (only 9.63 million tons in June 2020). From the beginning of the season to the end of June, the consumption of corn for ethanol production reaches a total of 113.4 million tons and for the remaining two months until the end of the season the indicator needs to be 22.5 million tons for the USDA forecast to be met. The weekly export inspections of corn from the United States are at the level of 1.38 million tons (1.18 and 0.73) and from the beginning of the season they add up to a total of 62.81 million tons (38.09). In the July report, analysts from the European Commission raised the forecast for corn production in the EU in 2021 by 2.2 million tons to 72.8 million tons (65.1 million tons in 2020). Corn imports estimate was reduced by 1 million tons to 14 million tons (14.3 million tons in 2020/21). AgRural forecasts a second corn production in Brazil of only 51.6 million tons compared to 54.6 million tons in the forecast of 01.07.2021 and 70.5 million tons last year. The reduction is almost 19 million tons that will not enter the international markets. A large part of it will be filled by Ukraine and the rest remains for the United States. In the United States, however, a yield of 179.5 bushels/acre is still in question. It is almost certain that a combination of lower yields and strong exports will push ending corn stocks below 25 - 26 million tons in the new season.

Yesterday, Chicago November soybean futures prices rose by 4 1/4 cents to close at $13.53 1/2 a bushel. Soybean prices rose slightly yesterday because there are doubts that the annual export forecast will not be met. The forecast for an average yield of 51 bushels/acre continues to seem unrealistically high. For now, we are waiting for news on the soybean market that will provide a clear market direction. Soybean processors in the United States have apparently bought enough quantities to expect a new harvest outside the market. 60% of soybean crops (58% and 73%) are in good and excellent condition in the United States. In June, 4.4 million tons of soybeans were processed in the United States, which is the lowest level since June 2019. The weekly export inspections of soybeans from the United States are at the level of 181,193 tons (242,044 and 557,607) and from the beginning of the season they totaled 58.22 million tons (39.38). Egypt has announced a tender for the purchase of 30,000 tons of soyoil and 10,000 tons of sunseed oil. In July, 8.66 million tons of soybeans were exported from Brazil, which is 13% lower compared to July 2020.