U.S. AGRICULTURAL TRADE UPDATE September 22, 1998 Approved by the World Agricultural Outlook Board September 1998, FAU-21 ------------------------------------------------------------------------------ U.S. AGRICULTURAL TRADE UPDATE is published monthly by the Economic Research Service, U.S. Department of Agriculture, Washington, DC 20036-5831. FAU-21. Subscriptions to the printed version of this update are available from the ERS-NASS order desk. Call, toll-free, 1-800-999-6779. ------------------------------------------------------------------------------ Summary--October 1997-July 1998 U.S. agricultural exports were $46.6 billion, a 4-percent drop from a year ago. Exports in July were $3.9 billion, down 3 percent from July 1997. Cumulative fiscal 1998 agricultural imports were up 4 percent, reaching $31.2 billion. Imports in July however, were slightly below a year ago at $2.9 billion. The year-to-date agricultural trade surplus was $15.3 billion, down 17 percent from 1997. Exports--Cumulative bulk exports for fiscal 1998 were 13 percent below 1997, due largely from lower export unit values. Fiscal year-to-date wheat exports were 20.7 million tons, up 18 percent from the previous year. Although wheat sales have strengthened in recent months, July exports were 6 percent below 1997 at 2.3 million tons. The cumulative wheat export value for fiscal 1998 was $3.1 billion, nearly the same as a year ago. Wheat exports to Egypt, Iraq, and Mexico were up sharply for July and the year-to-date. Shipments to other leading markets in Asia, including South Korea, the Philippines, and Pakistan were lower compared with 1997. Corn exports in July remained the same as a month earlier at 3.3 million tons, up 14 percent from July 1997. Cumulative corn exports for fiscal 1998, however, were 21 percent below fiscal 1997 at 31 million tons. Among leading markets for corn, Canada and Mexico made larger year-to-date purchases compared with 1997. This was offset by much weaker exports to Asian markets. Soybean exports in July were 790,000 tons, up 159,000 tons from the previous month. Stronger soybean exports in July boosted the cumulative fiscal total to 21.8 million tons, virtually the same as a year ago. While exports to the European Union dropped from the previous month, shipments to Mexico and East Asia increased. Indonesia purchased 100,000 tons in July, up sharply from previous months. The lower export unit value for soybeans reduced the year-to-date value from $6.3 billion in 1997 to $5.8 billion in 1998. Year-to-date cotton exports were 1.4 million tons, unchanged from the same period in 1997. Shipments to China fell from 357,000 tons to 142,000 tons. Exports to Mexico in July were 53,000 tons, pushing the cumulative total to 268,000, up 86 percent from a year ago. High value products (HVP) remain higher than a year ago. Continued strong demand for vegetable oils pushed the value higher in July. Vegetable oil exports reached $1.8 billion, a 40-percent increase over 1997. Cumulative beef and veal exports reached $2 billion, a 4-percent increase from 1997. The year-to-date volume of beef shipments increased 12 percent. However, the export unit value fell 7 percent. October through July export volume to Japan was up 17 percent from the previous year, giving a total of 311,000 tons. Cumulative fresh or frozen pork shipments increased 36 percent in volume, reaching 296,000 tons. However, a lower export unit value dampened the increase in value which reached $815 million, an 11-percent increase from a year ago. Wine shipments in July continued at a faster pace, with a year-to-date total of $399 million, a 35-percent increase. Exports of wine to the European Union increased 30 percent, while sales to Japan jumped 189 percent. Imports--Imports of vegetables continued to be the fastest growing category in fiscal 1998, reaching $3.7 billion, up 18 percent from 1997. Tomato imports in July were 63,000 tons, a 62-percent increase over the same month a year ago. Year-to-date tomato imports reached 780,000 tons, with a value of $667 million. Mexico is the dominant supplier of tomatoes, however imports from Canada have grown more rapidly in recent months. October through July potato imports reached $291 million, a 46-percent increase over 1997. Volume from Canada was 769,000 tons, up 42 percent from 1997. Wine imports continued at fast pace through July, with the value reaching $1.5 billion, up from a year earlier. However, the volume of wine increased only 3 percent over this same period as a result of a shift toward wine with higher import unit values. Year-to-date beer and other malt beverage imports were also up 15 percent, reaching $1.4 billion. Coffee import volume in July was down 21 percent from the same month a year ago. The cumulative volume reached 975,000 tons, down 7 percent from a year ago. The value of coffee reached $3.1 billion, nearly the same as the previous year. END_OF_FILE