U.S. AGRICULTURAL TRADE UPDATE August 22, 1997 August 1997, FAU-0897 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. 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--In June 1997 U.S. exports and imports slipped from the previous month. Exports dropped to $4.1 billion, 6 percent below June 1996 and down from May 1997. For fiscal 1997, exports through June reached $44.5 billion, 4 percent below fiscal 1996. Imports for June equaled $2.9 billion, slightly above the $2.7 billion in June 1996, but below the $3.2 billion of May 1997. October through June 1997 imports, however, remain 11 percent above a year ago. EXPORTS--Bulk exports in June reached $1.4 billion, down 26 percent from June 1996. Cumulative exports dropped 15 percent to $18.9 billion. As expected, exports of wheat and barley picked up, promoted by the onset of harvesting and more competitive prices. Large barley sales to Saudi Arabia contributed to June exports of 162,000 tons, up from just 62,000 tons last June, and exports for the fiscal year rose. However June U.S. wheat exports, at just under 1.8 million tons, were 12 percent less than a year earlier. And cumulative U.S. wheat exports, at 15.5 million tons, remain more than 40 percent below 1996 when demand was stronger. Although also still well below a year earlier, June 1997 corn exports slipped only slightly from May to 2.9 million tons. Exports for the fiscal year reached 36.9 million tons, 15 percent less than the amount shipped by June 1996. And at nearly $5 billion, the value of corn shipments this fiscal year dropped even more sharply than the quantity, reflecting this year's lower prices. U.S. soybean exports continued declining in June from both the previous month and last year. This June, 878,000 tons of soybeans were exported, compared with 1.4 million tons last June. Soybean exports are suffering from increased competition due to this season's shift in Brazil towards exports of soybeans rather than soybean meal. Nevertheless, year-to-date soybean exports are nearly 19 percent above the previous year, reflecting stronger sales early in the season when South American supplies were short. And while bean exports have suffered since the onset of the South American harvest this spring, U.S. soybean meal exports in June rose to 366,000 tons, sharply above both last year and May 1997. At $61.6 billion, the value of soybean meal exports has jumped 66 percent to $1.5 billion for 1997. Cotton exports in June continued relatively strong at $218 million and 131,000 tons, just under the May 1997 figures, but double those of June 1996. The cumulative export value of $2.3 billion for the fiscal year remains 19 percent below 1995/96 due to stronger export competition this season. In June, high-value product (HVP) exports reached $2.7 billion, up 6 percent from June 1996. And exports for the year-to-date are up 5 percent to $25.5 billion. Poultry meat, vegetables, soy meal and oil, and tobacco show strong year-to-year growth. At $1.9 billion for the fiscal year, poultry meat exports are 8 percent above 1995/96. Shipments of fresh or frozen chicken account for most of the gain. Shipments of vegetables from October through June totaled $3.1 billion, up 10 percent from the previous season. And at $1.4 billion, U.S. exports of tobacco are up 19 percent. Higher prices and increased demand are pushing U.S. exports of soybean oil this season. The 20,000 tons shipped in June nearly tripled the shipments of June 1996. At $384 million for the fiscal year, shipments of soybean oil are running nearly 60 percent above last season. Large gains have been made in sales to China this year, as China's production failed to keep pace with demand. During the last 2 years China has shifted emphasis to grain production at the expense of soybeans. IMPORTS-- Even though the $2.9 billion of imports in June 1997 slipped slightly from May's imports, cumulative fiscal year imports of $27.1 billion remain well above those of last season. At $3.7 and $2.9 billion, fruits/ nuts and vegetables are the largest import items, but account for only 11 and 4 percent of growth year-to-year. Coffee, at $2.7 billion the third largest import, is up 21 percent this fiscal year, while imports of tobacco and wine have risen at the rates of 62 and 22 percent. (Carol Whitton 202-219-0825) Next Update: Sep. 23, 1997 END OF FILE