US Ministry of Agriculture has issued its regular report. Its data has slightly changed. Productionhas dropped by 100 ths. bales, which is not very significant. The forecast has dropped mostly due to Brazil and the USA. Consumption has dropped even more – from 108.156 to 107.553, in other words, by 600 ths. bales. Consumption hasdropped mostly due to China.
Export and import have dropped, on average, by 700 ths. bales. Ending stocks have consequently risen from 74.665 to 76.520 bales, which is almost by 2 mln. bales. This, in its turn, is a rather significant bearish factor.
To sum up the abovementioned, it can be stated that the factor of smaller consumption considerably prevails over the factor of smaller production because of non-favourable weather conditions in the countries – largest producers of the product. One week ago this situation was predicted by Commodity Trading Department. Therefore, the market will yet remain within the set price range with a tendency to lower the price of the asset.
