U.S. AGRICULTURAL TRADE UPDATE
                      January 23, 1995

                  Economic Research Service
               U.S. Department of Agriculture
                Washington, D.C. 20005-4788

      Approved by the World Agricultural Outlook Board
           Tom Capehart, Coordinator--(202-219-1262)

Trade Surplus Surges - The U.S. agricultural trade surplus
increased 9 percent over October resulting in a November surplus
of $2.3 billion.  Import and export value gained.  With one month
remaining, the calendar year trade surplus was $20 billion, 2
percent below this time last year (table 3).

Export Growth - November exports rose $291 million to $4.7
billion, exceeding October by 7 percent and coming within $13.1
million of the monthly record set in March 1981.  Gains in feed
grains, cotton, corn, tobacco, and wheat boosted export value.
January-November 1994 exports reached $40.7 billion, 6 percent
ahead of 1993.  Cotton, chicken meat, rice, vegetable oils,
prepared vegetables, fruits, soybean meal, and hides and skins
showed the greatest increases for the year.

November wheat shipments totaled 2.9 million tons, up 6 percent
from October but 5 percent below November 1993.  Drought in
Australia helped boost U.S. exports.  Egypt purchased 718,000
tons, followed by Pakistan with 358,000 tons, and Japan with
250,000 tons.  Calendar 1994 exports through November were 27.7
million tons, 14 percent below last year.

November corn exports advanced 39 percent over October at 4.9
million tons.  Lower corn exports from China and the European
Union (EU), and higher prices for other feed grains helped U.S.
exports as the record U.S. corn harvest was underway.  November
shipments to Japan were 1.3 million tons;  Taiwan purchased
735,000 tons and Korea 641,000 tons.  January-November 1994
shipments totaled 30.4 million tons, 17 percent below 1993.
Soybean shipments fell 21 percent in November, as the harvest
progressed, but were still 8 percent over November 1993.  Japan
imported 383,000 tons and the Netherlands bought 320,000 tons .
Cumulative soybean shipments of 13.1 million tons in 1994 were 15
percent lower than last year.

Cotton exports continued at record levels.  Japan, China, and
Indonesia were the largest buyers in November.  November
shipments of 155,000 tons pushed annual exports over 1.5 million
tons, 48 percent higher than 1993.

Imports Rise - November imports increased 4 percent from October
to $2.4 billion as competitive import value gained 8 percent and
noncompetitive imports lost 5 percent.  Fruit and nut imports
showed strong gains for the month.  Mexican melon shipments and
grape imports from Chile surged as seasonal shipments began.
Vegetable imports rose 21 percent.  Cucumbers, onions, and
peppers from Mexico, and potatoes from Canada had the largest
gains.  Meat imports dropped 7 percent.

Calendar year to date imports were $24.4 billion, 8 percent ahead
of 1993.  Much of the 11-month gain was due to higher coffee
import value and high feed grain and oilseed imports earlier in
the year.  Fruit and vegetable import value was higher for the
11-month period.  (Tom Capehart, 202-219-1262)

FY 94 High-Value Product Exports - High-value product (HVP)
exports reached $25.9 billion, or 60 percent of total export
value in FY 1994, up from a 56-percent share the previous year
(table 4).  Among HVP's, beef rose 6 percent to $2.1 billion,
half of which went to Japan.  Poultry meat exports of $1.4
million were nearly 40 percent over FY 1993.  The Former Soviet
Union accounted for over 25 percent of frozen chicken shipments.
Vegetable exports rose 8 percent to $3.4 billion with strong
gains for frozen vegetables, especially frozen potatoes for
Japan.  Prepared vegetable product exports to high-income markets
grew.  Fruit and fruit juice exports rose 11 percent to $1.7
billion.  Taiwan and Mexico were major markets for apples and
Canada was the biggest buyer for grapes, melons, and peaches.
The EU and Canada were major destinations for orange juice.

U.S. Agricultural Trade Update is available on the CALL-ERS/NASS
electronic bulletin board.  Up to 9600 baud, N-8-1, at 1-800-821-6229 or
1-202-219-0377.