U.S. AGRICULTURAL TRADE UPDATE                                 March 4, 1996
            Approved by the World Agricultural Outlook Board   (Corrected)
-----------------------------------------------------------------------------
U.S. AGRICULTURAL TRADE UPDATE is published monthly by the Economic Research
Service, U.S. Department of Agriculture, Washington, DC 20005-4788.  FAU-0296.  
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.
----------------------------------------------------------------------------- 
 
This report was scheduled for release on February 23, but was postponed
until March 4, 1996, because of delays in obtaining data supplied by the U.S.
Department of Commerce, which experienced furloughs in late 1995.

Note: This report contains a correction from the previous March 4 release: In
the first sentence, last paragraph of page 1 (this page), the word "in" has
been changed to "than."
-----------------------------------------------------------------------------
  
Calendar 1995 Agricultural Trade Summary - Calendar year exports advanced 22
percent over 1994, reaching a record $55.8 billion.  Imports totaled $30
billion, 12 percent above 1994, also a record.  The final trade surplus was
$25.8 billion, the highest ever, and 37 percent greater than 1994's $18.9
billion.
 
Exports Gain Broadly - Gains in most export categories and the influence of
China and the Pacific Rim characterized 1995.  Strong demand for U.S. beef in
Japan boosted beef exports 15 percent to $2.6 billion, with Japan taking half
of U.S. beef shipments by volume.  Poultry meat grew 29 percent to $2 billion. 
Over $600 million went to Russia, which accounted for 36 percent of the volume
shipped.  Hong Kong and China took another 25 percent of U.S. poultry export
volume. Shipments of cotton totaled $3.7 billion, $1 billion greater than 1994
as volume gained 17 percent and prices increased.  High 1994 U.S. production,
and low production that year in Pakistan and elsewhere boosted demand for U.S.
cotton.  With purchases of over $800 million, China's demand for cotton was a
major factor in U.S. cotton export gains. At $3.9 billion vegetable exports
were unchanged from 1994.  Declines in prepared vegetables negated increases in
frozen and canned vegetable value.  Canada and Japan, together, took over half
by value.  Fruit exports gained 16 percent to $2.7 billion due to higher fresh
citrus value.  Japan, Canada, and Pacific Rim markets were major buyers.  The
European Union (EU-15) and Japan were major growth markets for nuts, boosting
volume 28 percent to 662,000 tons and value 13 percent to $1.4 billion.
 
Calendar 1995 wheat shipments totaled 32.3 million tons, 6 percent higher than
1994.  Value was up 34 percent to $5.4 billion.  Low world production and
stocks boosted wheat prices while expectations of yet higher prices kept volume
up.  Egypt, Japan, and Pakistan bought the highest volume in 1995.  December
shipments totaled 2.7 million tons.  Egypt, Japan, and Pakistan took 714,000,
227,000, and 175,000 tons, respectively.

Corn shipments of 60 million tons in 1995 were 68 percent higher than 1994. 
U.S. feed demand, China's switch from exporter to importer, and purchases of
U.S. corn by China's former markets, boosted volume.  Japan purchased 16
million tons, 3.9 million above 1994.  Korea and Malaysia increased purchases
to replace supplies no longer available from China;  U.S. shipments to Taiwan
nearly tripled in volume.  China took 5.4 million tons.  December sales totaled
4.7 million tons, with Japan buying 1.2 million tons, Korea 600,000 tons,
Mexico 500,000 tons, and Taiwan 440,000 tons.  
 
Soybean export volume of 22.8 million tons exceeded 1994 by 26 percent.  Higher
prices due to strong world demand coincided with record 1994 U.S. production,
advancing value 25 percent to $5.4 billion.  The EU-15 was the major buyer at
9.4 million tons, followed by Japan at 4 million tons.  Other major buyers were
Taiwan (2.5 million tons) and Mexico (2 million tons).  December exports
totaled 2.4 million tons.  The EU-15 and Japan were the major buyers.
 
Imports - Rubber, coffee, and cattle were the source of much of the $3.2
billion gain in import value.  Rubber imports surged 69 percent to $1.6 
billion on a slight gain in volume.  Coffee was up 31 percent to $3.3 billion,
also on steady volume.  Prices for both rubber and coffee were high because of
low stocks in consuming countries and uncertain production prospects throughout
the year.  Cattle imports surged 23 percent to $1.4 billion as Mexico reduced
herds due to high feed costs.  Oilseeds and fresh vegetables import value
increased.  Larger supplies of fresh vegetables from Mexico helped advance
import value.  (Tom Capehart, 202-219-1262)
 
Fiscal 1996 Exports Now Forecast at $60 Billion - The export forecast for
fiscal 1996 was increased $2 billion from November's forecast as prospects for
wheat, corn, and cotton improved.  Tight global supplies and strong foreign
demand continue to push grain and soybean prices upward as volume also
increased.  Large purchases by China have affected the world wheat and cotton
markets.  Lower anticipated corn production in Argentina, and continued higher
purchases by China and other countries, also contributed to the increase.  The
import forecast has been raised $500 million to $29.5 billion, reflecting
higher expected imports of tobacco and oilseeds.
 
 
                                   END-END-END