U.S. AGRICULTURAL TRADE UPDATE August 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-0896. 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. This report is also available on the ERS Home Page on the Internet's World Wide Web (http:\\www.econ.ag.gov\. Call (202) 219-0515 for additional information on electronic access. ------------------------------------------------------------------------------- Summary--June 1996 U.S. agricultural exports fell to $4.4 billion, the lowest in fiscal 1996, but 10 percent higher than in June 1995. Imports dropped to $2.7 billion, but were 9 percent above a year earlier. October 1995-June 1996 exports reached $46.3 billion, 13 percent more than last year, and imports were 8 percent higher at nearly $24.3 billion. Exports--High-value product (HVP) exports dropped 8 percent to $2.6 billion from the previous month, but were about the same as June 1995. Beef exports fell to $197 million, 16 percent lower than June 1995, but volume was only 4 percent lower at 51,000 tons. Smaller shipments to South Korea and a 12-percent drop in export price compared to a year ago account for the lower value. June poultry meat exports rose 24 percent to $172 million, on increased sales to Russia, Hong Kong, Japan, and Mexico. Horticultural exports were 2 percent lower than June 1995; strong gains in wine and nut exports offset declines in fruit and vegetables. Nearly 7.5 million tons of bulk exports were shipped in June, compared with 8.2 million in June 1995. Bulk exports totaled $1.8 billion, 27 percent higher than a year earlier as higher commodity prices more than offset volume declines. Year-to-date bulk value reached $22.1 billion, up 24 percent, and volume was slightly lower at 94 million tons. Wheat exports were 2 million tons in June, slightly less than a year earlier. Japan was the leading market with 247,000 tons, followed by Egypt with 226,000 and China with 178,000. Cumulative wheat export volume rose 2 percent to 23.4 million tons. June corn exports, at 3.5 million tons, were 18 percent lower than a year earlier. However, U.S. corn exports last summer were stronger than normal because China had suddenly stopped exporting corn early in 1995. Corn export prices reached a record $181 per ton in June 1996. Japan purchased 1.1 million tons and Mexico 679,000. Corn exports through June were 43.6 million tons, 4 percent ahead of last year. Soybean exports were a strong 1.4 million tons in June, 46 percent higher than a year earlier. The European Union was the leading buyer with 386,000 tons, followed by Japan with 306,000. Despite the June increase, accumulated soybean exports were 4 percent below a year ago with 18.6 million tons in fiscal 1996. Cotton exports fell to 57,000 tons, 36 percent lower than in June 1995. Mexico was the leading buyer at 11,000 tons. Year-to-date shipments were 1.5 million tons, 16 percent lower than in fiscal 1995. Imports--June imports advanced 9 per-cent over a year earlier due to strong gains in beer and wine, tobacco, tomatoes, and sugar. Beer and wine imports rose 26 percent to $240 million. Beer imports were a record 1.5 million hectoliters with record imports from Mexico. Tobacco imports jumped 350 percent to $77 million, and sugar imports surged 145 percent to $117 million. Tomato imports were $62 million in June, more than double a year earlier, but volume was 13 percent lower at 39,000 tons. Cotton imports in June were 25,000 tons, the highest since 1919. Year-to date cotton imports were 44,000 tons, with nearly 22,000 tons from Central Asia and 13,000 tons from Argentina. Swine imports from Canada continued on a strong pace, totaling 195,000 head valued at $21 million in June. Higher U.S. hog prices have led to increased imports, and year-to-date swine imports were a record 1.8 million head valued at $164 million. Exports to Asia Pacific Continue To Rise--Through June of fiscal 1996 agricultural exports totaled nearly $20 billion to Japan, China, East and Southeast Asia. These countries accounted for 43 percent of total exports, compared with 33 percent in 1986. Exports to Japan reached $9.3 billion through June, a 20-percent share that has remained constant the last 10 years. But China, Hong Kong, South Korea, Taiwan, and Southeast Asia have increased their share of U.S. exports from 14 percent to 23 percent since 1986. The region is a major market for bulk and HVP exports, accounting for 48 percent and 38 percent, respectively. Japan is still the leading market for both bulk and HVP exports, and recent export growth has been particularly strong to Southeast Asia. (Joel Greene, 202-219-0816). ENDOFFILE