AGRICULTURAL TRADE UPDATE                             February 22, 1995
         Approved by the World Agricultural Outlook Board
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U.S. AGRICULTURAL TRADE UPDATE is published monthly by the Economic
Research Service, U.S. Department of Agriculture, Washington, DC 20005-
4788.  FAU-0295.
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Trade Surplus Highest in 10 Years - Record exports in December
pushed the agricultural trade balance up 7 percent
to $2.6 billion.  The year-end surplus 
was $18.9 billion, the highest since 1983 (table 3).

Record Monthly Exports - Advancing 8 percent over November,
December exports were $5 billion.  Broad gains boosted export value
16 percent over December 1993.  At $45.7 billion, 1994 exports set
a second consecutive record by a margin of $2.7 billion.  Cotton,
vegetables, meats, and other animal products showed strong gains in
1994.

Grains and feeds, and oilseeds, the two largest components of U.S.
agricultural exports, fell in 1994 because low 1993 production
reduced shipments early in the year.  But, beef and poultry meat,
vegetable oils, horticultural commodities, and cotton more than
made up for the deficit.  Meat shipments to Latin America and Asia
advanced, and global vegetable oil shortages bolstered U.S. exports
to China.  Canada, Asia, and Latin America imported more U.S.
horticultural commodities.  Cotton shipments continued at record
levels due to large imports by China and low exportable supplies in
other major producing countries.

December wheat shipments of 2.8 million tons were slightly below
the previous month and 16 percent below December 1993.  Egypt
continued its large purchases, importing 654,000 tons.  Japan and
the Philippines were also major buyers.  Reduced exportable
supplies in Australia and lower stocks in other producing countries
have helped minimize the effects of lower U.S. production in
1993/94 on exports.  Calendar 1994 exports reached 30.5 million
tons, 14 percent below 1993.  

Low corn production in 1993 resulted in reduced exports in early
1994.  But exports increased after the record 1994 harvest and
December shipments were 5.2 million tons, 300,000 tons greater 
than November and 1.7 million over December 1993.  Low global
coarse grain production, especially of barley, has increased demand
for U.S. corn.  Japan purchased 1.4 million tons in December, and
shipments to Korea, Mexico, and Taiwan each exceeded 500,000 tons. 
Total 1994 exports were 35.6 million tons.

Soybean shipments gained 700,000 tons from November and were
800,000 tons ahead of December 1993, reflecting increased U.S.
supplies, low world stocks, strong demand from crushers in Brazil,
and low production in India.  The Netherlands doubled imports to
740,000 tons in December, and Japan imported 390,000 tons.  Soybean
shipments of 18.1 million tons in 1994 were 7 percent below 1993.

Record Imports - December import value was unchanged from November
and just below December 1993.  Seasonal increases in fresh
vegetables, fruits, and other horticultural products held monthly
value up.  Calendar year imports were up 7 percent from 1993,
reaching a record $26.8 billion.  Competitive product import value
rose 4 percent to $20.1 billion.  In 1994, grain and feed imports
gained over $500 million due to low U.S. corn production;  Canadian
barley alone increased by $130 million and volume gained 1.4
million tons.  Overall, fruit import value rose 8 percent, with
mangos and melons from Mexico, and grapes from Chile advancing the
most.  Oilseed imports gained 31 percent in value due to imports of
Canadian rapeseed and soybeans.  Tobacco import value plummeted 55
percent after the first full year of restrictions on foreign leaf
use in U.S. cigarettes.  Noncompetitive products rose 20 percent to
$6.7 billion driven by sharp increases in coffee unit values.

(Tom Capehart, 202-219-1262)

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