HDR1011800201000623951500 U.S. AGRICULTURAL TRADE UPDATE June 23, 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-0695. 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. ---------------------------------------------------------------------------- April Import, Export, and Trade Balance Records Broken - Agricultural imports and exports each declined 10 percent from March levels and reduced April's agricultural trade surplus by $236 million to $2 billion. The cumulative (October 1994-April 1995) surplus for fiscal 1995 was $15.5 billion, compared with $11 billion this time last year (table 3). Elevated Exports Continue - Exports fell 10 percent to $4.5 billion for the month but were still higher than April last year. April's decline was due primarily to lower grain, cotton, soybean, and vegetable oil exports, as shipments of the 1994 field crop harvest wound down. Vegetable export value rose on strong broccoli, carrot, celery, and lettuce shipments. Fiscal year-to-date value kept a record pace. October-April export value was $32.9 billion, 24 percent over the same period in fiscal 1994. April cotton shipments fell 20 percent from the previous month to 240,000 tons, but remain well above last year's level. The decline was proportional to March-April last year as China, Pakistan, Japan, and Indonesia all reduced imports. Total shipments were 45 percent higher than April 1994. Year-to-date volume was 75 percent higher than this time last year at 1.6 million tons. Sorghum exports declined 25 percent by volume to 345,000 tons in April. Seasonal declines and reduced imports by Mexico (down 20,000 tons to 143,000 tons), and Japan (down 52,000 tons to 133,000 tons) were largely responsible for the change. Year-to-date shipments totaled 3.4 million tons, 124,000 tons above the same period in fiscal 1994. April wheat exports totaled 2.3 million tons, 14 percent above March. U.S. shipments to China were 532,000 tons and Egypt reduced imports of U.S. wheat by 167,000 tons, taking 295,000 tons. Bangladesh, Japan, Korea, and the European Union (EU) were major buyers. October-April shipments were 2 percent below last year at 18.7 million tons. April corn exports of 4.2 million tons were almost double April 1994. Strong demand in Asia continued to boost exports. October-April shipments of 32.6 million tons were 56 percent ahead of the same period last year. Compared with March, April exports to Japan were essentially unchanged at 1.3 million tons. Korea reduced imports slightly to 670,000 tons. Shipments to Taiwan fell by 200,000 tons to 475,000 tons, and China held steady at 380,000 tons. Soybean shipments fell slightly to 2.2 million tons. Low prices and favorable exchange rates continue to boost U.S. shipments. The EU imported 967,000 tons in April, down from March, and Japan increased purchases to 463,000 tons. Spain, Taiwan, Korea, and Malaysia each bought over 100,000 tons. At 17.1 million tons, fiscal 1995 year-to-date shipments were up 40 percent, 4.9 million tons ahead of the same period in fiscal 1994. Lower Imports - April agricultural imports fell nearly $300 million from March to $2.5 billion. Import value was 12 percent higher than April 1994. Higher import unit values for non-competitive commodities, especially coffee and rubber, continue to bolster import value compared with a year earlier. Cumulative imports were $17.3 billion, 12 percent higher than a year earlier. (Tom Capehart, 202-219-1262) Record Poultry Meat Exports - Year-to-date poultry meat exports for fiscal 1995 exceeded October-April of last year by 10 percent, setting a new record at $1.1 billion. Russia, now the largest market for U.S. poultry meat exports, has been the source of much of the gain. Diminished production, substitution of poultry for red meat, and preference for higher-quality imported chicken meat, all contributed to the increase in shipments to Russia, which advanced 84 percent to $280 million. Other markets are growing too. Overall, Asian imports totaled $389 million. Economic growth and favorable exchange rates almost doubled the value of poultry meat shipped to Hong Kong; the second largest market, and Japan gained 33 percent. Mexico has imported $162 million of poultry meat so far in fiscal 1995, slightly less than last year. In spite of the peso devaluation's negative effect on imports, Mexico was still the third largest market after Russia and Hong Kong. Adequate supplies and low U.S. poultry prices make U.S. producers well positioned to supply foreign demand for cuts that are less popular in the United States. END-END-END