and US Economy Strong Despite Worries
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**USDA cotton projections for August-July show global cotton ending stocks will increase by .6% to 94.5 million bales, the second highest since 2014-15.
As production exceeds mill use for a second straight year, world cotton prices are forecast below the $1.01 per pound estimated for 2022-23 and the recent high in 2021-22 of almost $1.32 per pound.
Although the world harvested area is projected to increase 2%, a projected decrease in the global yield reduces the estimate year-over-year.
**The Environmental Protection Agency has denied 26 Small Refinery Exemption petitions for the Renewable Fuel Standard compliance years 2016-18 and 2021-23.
This demonstrates the agency’s continued commitment to ending the backlog of pending exemptions.
The American Soybean Association welcomed the continued transparent and fair assessment of exemptions through more stringent hardship and economic impact requirements.
EPA has recently worked to develop new parameters for petition approvals that have proven effective at strengthening the RFS.
**The U.S. economy continues to defy gravity and remains strong despite lingering inflationary pressures, quantitative easing and contracting of the money supply, higher lending rates and other headwinds.
But looming risks to the economy are mounting.
CoBank's Knowledge Exchange says depleted consumer savings, tighter commercial lending standards and an inverted yield curve are likely to result in a mild recession later this year.
