U.S. AGRICULTURAL TRADE UPDATE July 22, 1996 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-0796. Subscriptions 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. ----------------------------------------------------------------------------- Summary--May 1996 U.S. agricultural exports dipped 6 percent from the previous month to $4.8 billion, but were still 14 percent higher than May 1995. Imports totaled $2.9 billion, 5 percent lower than the previous month but were 12 percent higher than May 1995. October 1995-May 1996 agricultural exports reached $42 billion, 13 percent more than last year, and imports were 8 percent higher at nearly $22 billion. Exports--High-value product (HVP) exports totaled $2.8 billion in May, 11 percent higher than a year earlier. Red meat exports in May were 16 percent higher than a year ago because of strong pork exports. Pork exports totaled $126 million, compared with $75 million in May 1995, on strong sales to Japan. Pork exports to Japan totaled $102 million in May and $120 million in April, as they surged before Japan's variable levies on pork are imposed. At $230 million, beef exports were about the same as a year ago. Poultry meat rose 38 percent over May 1995 to $204 million as shipments to Russia picked up again, reaching $69 million. May fruit, nut, and vegetable exports rose 3 percent to $689 million on strong sales of almonds to the European Union (EU-15). Year-to-date HVP sales totaled $21.6 billion, 5 percent more than fiscal 1995. Compared with May 1995, bulk exports decreased 8 percent to 8.9 million tons on lower feed grains, rice, soybeans, and cotton. However, value was 19 percent higher at nearly $2.1 billion. Bulk exports for October-May totaled $20.3 billion, 24 percent higher than a year earlier, and volume was unchanged at 86.5 million tons. Wheat exports were 2.1 million tons in May, slightly more than May 1995. Japan was the leading market with 459,000 tons, followed by China with 345,000 tons. The Philippines and Egypt each bought over 100,000 tons. Cumulative wheat export volume increased 3 percent to 21.4 million tons, and value jumped 42 percent to $4.4 billion. May corn exports totaled 5 million tons, a 5-percent decline compared with May 1995. Japan purchased 1.5 million tons and Mexico took 958,000 tons. Exports to South Korea and Taiwan were each 684,000 tons. Corn exports through May were 40.1 million tons, 6 percent ahead of last fiscal year's shipments. Export value was 50 percent higher at $6.1 billion. Soybean exports fell to 1.1 million tons on seasonal decline. Japan was the leading buyer with 237,000 tons, followed by the EU-15 and Mexico with 206,000 tons each. Total fiscal 1996 soybean exports declined 6 percent from a year ago to 17.1 million tons. Cotton exports fell to 75,000 tons, 50 percent below May 1995 as the pace of cotton exports continued to decline. Mexico was the leading purchaser at 14,000 tons. Year-to-date shipments fell 15 percent to 1.5 million tons, and value declined 10 percent to $2.7 billion. Imports--U.S. agricultural imports in May 1996 totaled $2.9 billion, 12 percent higher than May 1995. Most of the increase was due to gains in vegetables, sugar, beer and wine, and fruit juice imports. Tomatoes were $91 million compared with $26 million a year ago. Sugar surged more than 300 percent to $82 million. Fruit juice imports were $103 million on strong apple and orange juice gains. Cotton totaled 11,000 tons valued at $19 million, the highest since September 1967. Year-to-date imports were $21.6 billion, 8 percent more than a year earlier. (Joel Greene, 202-219-0816). Exports to Mexico on the Rise--Fiscal 1996 U.S. agricultural exports to Mexico jumped to $3.3 billion, 34 percent more than a year ago, and will easily surpass the record $4.1 billion set in 1994. Bulk commodities led the resurgence in exports, especially corn, soybeans, cotton, and wheat (table 6). Sharp import demand due to severe drought and high commodity prices boosted the value of bulk exports 92 percent. Volume was 47 percent higher at 8.3 million tons. HVP exports were unchanged from a year earlier. However, on a calendar basis (January-May), HVP exports show substantial growth in 1996, rising 36 percent to $1 billion, compared with $745 million in 1995. Imports from Mexico of $2.8 billion were unchanged from last year. The U.S. agricultural surplus was $480 million through May, compared with a $15-million deficit in fiscal 1995. END_OF_FILE