HDR1011800201001023951500 U.S. AGRICULTURAL TRADE UPDATE October 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-1095. 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. ----------------------------------------------------------------------------- Cumulative Export Value Nearly $10 Billion Higher than 1994 - Year-to-date fiscal1995 U.S. agricultural exports totaled $49.4 billion, $9.5 billion ahead of the 11-month period last year. With 1 month remaining in the fiscal year, October 1994-August 1995 export value surged on increased shipments of wheat, corn, and soybeans and gains in high-value product (HVP) shipments, primarily poultry meat, beef, fruits, and vegetables. August exports gained 11 percent over July, reaching $4.4 billion, 25 percent higher than August 1994. The advance in exports and a slight decline in August imports resulted in a cumulative trade surplus of $22.3 billion for fiscal 1995, $6 billion above last year. Year-to-date corn shipments reached 52.3 million tons in August, compared with 30.1 million tons last year. Corn shipments were valued at $5.8 billion, $2.3 billion higher than the same period last year. Japan was the leading buyer of U.S. corn, taking 14.8 million tons for the 11-month period and 950,000 tons in August. Korea has purchased a record 7.8 million tons so far this year and 109,000 tons in August. China purchased 3.2 million tons, making it the third largest buyer of U.S. corn, having entered the market in January. Wheat shipments totaled 28.6 million tons so far this fiscal year, gaining 700,000 tons over fiscal 1994. August shipments totaled 3.3 million tons. Year-to-date fiscal 1995 wheat exports totaled $4.3 billion, compared with $3.6 billion this time last year. In fiscal 1995, Egypt bought 5.1 million tons, much of it under U.S. export promotion programs, as lower domestic production and reduced Australian production in 1995 gave U.S. suppliers an edge. Egypt purchased 650,000 tons in August. China was the second largest buyer of U.S. wheat this year, at 3.4 million tons, with August levels at 369,000 tons. Japan followed at 2.8 million tons for the year and 313,000 tons in August. Year-to-date U.S. soybean exports surged to 21.7 million tons, up from 15.2 million tons a year earlier. Record U.S. production in 1994 combined with surging global vegetable oil demand boosted exports. October-August soybean exports reached $4.8 billion, $900 million above last year. The European Union (EU), facing short soybean supplies, increased its purchases nearly 60 percent. EU purchases in August were 413,000 tons. Year-to-date sales to Japan of 3.7 million tons were slightly above last year s 3.4 million. Japan took 226,000 tons in August. Year-to-date shipments to Taiwan were 2.3 million tons with August shipments at 52,000 tons. Rice exports jumped 1.2 million tons for October-August, reaching 3.5 million tons. Turkey and Brazil both increased imports dramatically from fiscal 1994 levels. Year-to-date shipments to Turkey advanced by 345,000 tons and shipments to Brazil jumped from just 1,000 tons to 352,000 tons. Mexico increased year-to-date imports 82,000 tons to 291,000 tons. Policy changes in China have boosted its rice imports, especially from Vietnam and Thailand. Poor crops in Indonesia have tightened Asian supplies, leaving the United States to supply the Western Hemisphere and Near East markets. Imports - Cumulative fiscal 1995 agricultural imports totaled $27.2 billion, 13 percent higher than fiscal 1994. August imports were $2.4 billion, a 7-percent gain over August 1994. Compared to August 1994, cattle, fruits, vegetables, and tobacco import value advanced, but coffee declined. (Tom Capehart, 202-219-1262) Leading Sources of Agricultural Imports - Canadian shipments to the U.S. totaled $5.2 billion in fiscal 1994, making it the number one source for agricultural imports. So far this year, imports have gained $100 million, to $4.9 billion for the October-August period. Advances in cattle, vegetables, rapeseed oil, and cocoa products have been offset by broad declines in a wide array of commodities, especially grains, oilseeds, malt beverages, and meats. Shipments of live cattle effectively replaced meat. Low Canadian grain production and stocks have reduced shipments. Favorable terms of trade following the peso devaluation boosted fiscal 1995 U.S. imports of vegetables, fruits, and cattle from Mexico. Mexico became the largest upplier of coffee due to lower production in Brazil. Value jumped as world coffee prices soared. Tomatoes, onions, peppers, melons, and beer were some of the other products with large value gains. END-END-END