U.S. AGRICULTURAL TRADE UPDATE                                July 23, 1998
July 1998, FAU-19
            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 
20036-5831.
 
Subscriptions to the printed version of this report are available from the 
ERS-NASS order desk.  Call, toll-free, 1-800-999-6779 and ask for stock 
# FAU, $41/year.  ERS-NASS accepts MasterCard and Visa.
---------------------------------------------------------------------------

Summary--U.S. agricultural imports dropped sharply in May 1998 to
$3 billion, 7 percent below May 1997 and down 10 percent from
April 1998.  Despite this drop in May imports, fiscal 1998
cumulative imports of $25.2 billion remain 4.5 percent above the
first 8 months of 1997.  At $38.7 billion, however, exports in
the October-May period are 4 percent below 1997.  May exports 
dropped 10 percent from April and 8 percent from May 1997.   With
both exports and imports down in May, the 1998 export surplus to
date remained at $13.5 billion, 17 percent below last year.

Exports--At $15.3 billion, exports of bulk commodities are 12.5
percent below fiscal 1997.  Although 1998 wheat shipments are up
and exports of cotton and soybeans remain about the same as in
1997, lower  corn shipments pulled total bulk exports down for
the year.

At $2.9 billion and 24.5 million tons in 1998 to date, U.S. corn 
exports are off 37 percent in value and 28 percent in volume. 
Corn shipments to Canada and Mexico increased, but exports to
most other destinations dropped in part because of strong
competition from other exporters.

October-May 1998 U.S. wheat exports equal $2.5 billion and 16.6
million tons, up 5 percent in value and 20 percent in quantity
from the first  8 months in 1997.  The quantity of wheat shipped
in May 1998 rose 5 percent from the previous month and 46 percent
from May 1997.  Egypt has taken more than 3 times as much U.S.
wheat this year as it did last year.

Cumulative U.S. shipments of soybeans  through May reached $5.4
billion and 20.4 million tons compared with $5.8 billion and 20.3
million tons at the same time last year.  Both quantity and value
of May exports slowed from April, as marketing of the record
South American crop continued to raise competition and reduce
prices.

Cotton exports for the first 8 months of 1998 equalled $1.9
billion and 1.2 million tons.   Export value fell 7 percent below
1997, but quantity is virtually unchanged year-to-year.  In May,
strong exporter competition continued pressuring quantity and
value.

U.S. exports of high-value products (HVP) remain strong, despite 
a drop from the previous May.  Exports of vegetable oils, up 41 
percent in the year-to-date to $1.5 billion, account for much 
of the gain.  Canada, Mexico, and the European Union (EU) are 
large importers of U.S. vegetable oils this year; however, most
of the growth in U.S. exports has been to China and Hong Kong.
The larger HVP exports, red meats and vegetables, at $3.1 billion 
and $2.9 billion, respectively, also show export growth in 1998.
 
Imports--Growth of imports in 1998 continues to be spread across
a number of products, including cocoa, up 24.4 percent to $1.5
billion;  wine, up 17.7 percent to $1.2 billion; and vegetables,
up 17.1 percent to $3.1 billion.  Coffee imports, while up 14
percent in value because of higher prices, to $2.6 billion, are
down 5 percent in quantity from last season's high.  
(Carol Whitton 202-694-5287)

Canada and Mexico take more U.S. exports in 1998--U.S. exports to
Canada and Mexico are rising in fiscal 1998.  In the first 8
months, Canada took $4.7 billion in exports from the United
States, while Mexico took $4 billion.  This  already is 7 percent
more than the same period in 1997 for Canada and up 18 percent
for the period for Mexico.  Total U.S. exports to Canada and
Mexico are forecast at $7 billion and $6 billion, respectively,
for the year, up from $6.6 billion and $5.1 billion for all of
1997.

U.S. shipments of corn to Canada and live sheep and sorghum to
Mexico in October-May already exceed exports in all of 1997.
Other U.S. exports to Canada that are also up compared with the
same 8 months in 1997 include live poultry, fruit juices, fresh
vegetables, oilseeds and products, whole bovine hides, and fruits
and preparations,  which rose 6-49 percent so far this year. 
Other U.S. exports to Mexico that are up strongly so far in 1998
include corn, soybeans, whole bovine hides, and other hides and
skins.
 
Next Update: August  20, 1998

END_OF_FILE