K. Warsh’s start at the helm of the Fed has been cautious; indeed, with persistent inflation in the U.S., it will be difficult to lower key interest rates until a peace deal is signed with Iran. The rise in Treasury yields also poses risks, even as the economy shows no signs of slowing down across the Atlantic, where full employment prevails. It should be noted, however, that the ECB is seriously considering raising its rates.
The cotton market experienced another challenging week:
- - Rain in the U.S. has eased fears of a devastating drought for crops. However, concerns about the El Niño phenomenon persist.
- - Speculators’ long positions clashed with certified stocks, prompting them to liquidate, which weighed on the market and drove prices lower.
- - On the eve of the June WASDE report, it is worth noting that U.S. cotton is selling well and that USDA export forecasts are expected to be met.
While Bangladesh and Pakistan appear to be stalling, Indian demand remains strong.
Production costs are soaring, and the health crisis surrounding cadmium-containing phosphate products raises questions. The health risks of this heavy metal have been known for a long time. What will be the impact in Africa, where the world’s leading producer, Morocco, will have to adapt its production and bring it up to standard? But also, what future lies ahead for other producing countries where cadmium levels are even higher?
However, as noted during the presentation of the latest Cyclope report last week, the era of carefree globalization has come to an end, giving way to a lasting oil crisis. The figure repeated ad nauseam is that of the oil production shortfall, which is hovering around 14 million barrels per day. OPEC’s calls to increase production starting in July are likely to go unheeded.
In a world at war, Pope Leo XIV published an encyclical, Magnifica Humanitas, on the necessary struggle to disarm AI. It is an interesting paradox that an American Pope is standing in the way of the ultra-power of American tech giants to remind us that only God can resolve existential questions…
Source: Mambo