U.S. AGRICULTURAL TRADE UPDATE April 21, 1995 Approved by the World Agricultural Outlook Board ----------------------------------------------------------------------------- U.S. AGRICULTURAL TRADE UPDATE is published monthly by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20005-4788. FAU-0495. Subcriptions to the printed version of this update are available from the ERS- NASS order desk. Call, toll-free, 1-800-999-6779 and ask for stock #FAU, $20/year. ERS-NASS accepts MasterCard and Visa. ----------------------------------------------------------------------------- Trade Surplus Up - The February 1995 agricultural trade surplus was $2.3 billion, 19 percent above January's and 60 percent above February 1994. The fiscal year-to-date (October 1994-February 1995) surplus of $11.3 billion was $4 billion above last year, reflecting higher grain and oilseed shipments (table 3). February Exports Increase - Agricultural exports of $4.8 billion were 8 percent higher than January, and reached an all-time high for February. Year-to-date exports were up 45 percent from last year. Strong demand for U.S. grain due to decreased production in other exporting countries, along with increased demand for high-value products, has boosted exports. Cotton, beef, poultry, fruits, vegetables, juices, and vegoils were all running ahead of this point last year. Exports to Mexico continued at the lower levels seen since the peso devaluation in December 1994, but Canada imported 17 percent more than a year earlier. Asia had the greatest growth, with overall exports up 32 percent in fiscal 1995. Exports to China alone grew by $700 million. February wheat exports totaled 2.7 million tons, 4 percent over January and 12 percent higher than February 1994. China was the largest importer of U.S. wheat at 333,000 tons. Shipments to Japan increased to 276,000 tons. Egypt took 291,000 tons, and Pakistan 209,000 tons. Year-to-date volume was 5 percent below last year at 13.7 million tons due to lower world demand. Corn exports of 4.9 million tons were slightly higher than January. Japan and Korea continued large imports at 1.4 million tons and 819,000 tons, respectively. Taiwan imported 517,000 tons and China continued buying U.S. corn, taking 427,000 tons. Asian countries continued purchases from the United States, replacing usual Chinese exports. Total October 1994-February 1995 shipments at 23.4 million tons were 48 percent ahead of the previous year. February soybean shipments were steady at 2.5 million tons as they entered the period of peak shipments. The European Union (EU) imported 1.3 million tons, followed by Japan at 373,000 tons. Korea and Taiwan also continued to be major buyers. October-February exports of 12.6 million tons were 29 percent ahead of fiscal 1994. Cotton shipments continued at unusually high levels, setting records for February and the fiscal year. February shipments reached 301,000 tons, valued at $514 million. Demand from China, and lower exports from Pakistan, and India continue to drive exports. Year-to-date shipments have exceeded 1 million tons. Imports Steady - February imports dipped slightly to $2.5 billion, only $15 million below January. Imports of noncompetitive products, especially coffee and cocoa, declined. Lower grain, beef, vegetable, and nut import values were offset by increases in sugar, beer and wine, and fruits, reflecting seasonal trends. Cattle imports increased due to shipments from Mexico. Feedlots there faced higher feed costs and the peso devaluation made the U.S. market more attractive. February import value from Mexico was up 37 percent compared with February 1994. Cumulative total agricultural imports for the 5-month period were $12.1 billion, up 12 percent, the highest ever for this point in the fiscal year. (Tom Capehart, 202-219-1262). Major U.S. Export Destinations - Calendar 1994 agricultural exports totaled $45.7 billion, the highest ever. The United States exported more than $2 billion each to Japan, the EU, Canada, Mexico, Korea, and Taiwan (in descending order) in 1994. Shipments to Japan rose 6 percent in value from 1993 while those to the EU fell less than a percent. Canada purchased 4 percent more while Mexico increased imports 25 percent during its first year in NAFTA. Asia was the leading regional destination with 40 percent, or $18.6 billion, of U.S exports. Latin America was second at $8 billion and Western Europe followed at $7.4 billion. Africa imported $2.5 billion of U.S. agricultural products, and the Middle East $1.8 billion (See table 4). END-END-END