U.S. AGRICULTURAL TRADE UPDATE November 28, 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-1195. 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. ----------------------------------------------------------------------------- Fiscal 1995 Agricultural Exports Set Record at $54.2 Billion - Fiscal 1995 U.S. agricultural exports exceeded fiscal 1994's by $10.7 million, breaking the previous record set in 1981 of $43.8 billion by over $10 billion. Higher feed grain, oilseed, cotton, and poultry meat export values were behind the increase. September export value gained 8 percent over August, reaching $4.7 billion, 33 percent higher than September 1994. The gain in exports, combined with nearly-steady imports, resulted in a September agricultural trade balance of $2.4 billion. The fiscal 1995 agricultural trade balance was $23.7 billion, comparedwith $17.1 billion last year. Fiscal 1995 corn shipments totaled 58.6 million tons, approaching the levels in the early 1980's and exceeding fiscal 1994 by 77 percent. At $6.6 billion, value was $2.8 billion higher than last year. The drought in Australia, record 1994/95 U.S. production, and increased exports to Pacific Rim markets formerly supplied by China boosted U.S. shipments. Japan led other countries in U.S. corn purchases at 16.1 million tons. Korea bought 8.9 million tons, and Taiwan 6.2 million tons. China purchased 4 million tons, its first from the United States since 1990. Wheat shipments reached 32.1 million tons in fiscal 1995, just 1 million tons over fiscal 1994. Fiscal 1995 wheat exports were valued at $5 billion, up $1 billion. Tight world supplies due to lower 1994/95 U.S. and Australian production boosted world wheat prices. Egypt bought 5.8 million tons, followed by China with 3.8 million, and Japan with 3 million tons. Egypt, and China were the major buyers in September with 633,000, and 407,000 tons, respectively. Soybeans reached 23.6 million tons in fiscal 1995, 7.2 million tons above last year and approached the previous record of 25.5 million tons set in 1982. Increased global vegetable oil demand combined with record U.S. soybean production caused soybean exports to surge. Total value jumped 27 percent to $5.3 billion. The European Union (EU) was the major buyer, taking 10.1 million tons during fiscal 1995, followed by Japan with 4.1, Taiwan at 2.6, and Mexico at 1.8 million tons. For September, the EU purchased 735,000 tons followed by Japan with 317,000 tons. Mexico and Taiwan bought 279,000 and 246,000 tons, respectively. At $10.6 billion, animal products gained $2 billion in fiscal 1995, with red meats, poultry, fats, and hides contributing. Vegetable shipments totaled $4.1 billion 18 percent higher than last year. Canada, Japan, and the EU were leading destinations. Cotton exports surged 52 percent, reaching a record high of $3.5 billion. Pakistan and India, usually major suppliers, were net importers, Australian production suffered from drought, and China boosted purchases, giving the United States an edge. Imports - Fiscal 1995 agricultural imports reached $29.5 billion, 12 percent higher than fiscal 1994. Coffee, the largest single import commodity, increased $1.4 billion to $3.4 billion due to high world prices. Vegetables, oilseeds, cattle, and rubber imports also showed strong gains. (Tom Capehart, 202-219-1262) Major Export Destinations - Japan continued as the major buyer of U.S. agricultural products in fiscal 1995, with imports of $10.5 billion, 14 percent higher than fiscal 1994. Corn shipments to Japan alone surpassed total U.S. agricultural value shipped to all but eight countries. Beef shipments were $1.6 billion, up 26 percent. Vegetables and fruits gained 27 and 14 percent, respectively, reaching about $700 million each. Soybeans were the only major commodity to decline. At $8.2 billion, the EU was the second biggest importer of U.S. agricultural products. Soybeans ranked first of EU-destined commodities at $2.2 billion, advancing 37 percent over fiscal 1994. Grains and feeds gained 25 percent, reaching $1.8 billion. Nuts were up 13 percent at $694 million and corn gained 81 percent, at $372 million. Vegetables, fruits, and tobacco were also major exports to the EU. Canada and Mexico follow the EU as major buyers of agricultural commodities from the United States. Canadian imports of over $5.8 billion were mostly vegetables, grains, fruits, and cattle. Mexico purchased $3.7 billion, with sorghum, soybeans, corn, and vegetables the leading commodities. China was the seventh largest export destination, valued at $2.4 billion. Beef shipments of $2.6 billion exceeded fiscal 1994 by 19 percent, driven by sales of $2 billion to Asia. Poultry meat exports gained 33 percent to $2.9 billion. Russia, Hong Kong, and Mexico were the leading markets. END-END-END