U.S. AGRICULTURAL TRADE UPDATE November 26, 2001 November 2001, ERS-FAU-59 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 USDA order desk. Call, toll-free, 1-800-999-6779 and ask for stock # SUB-FAT-4030, $62/year. ERS accepts MasterCard and Visa. --------------------------------------------------------------------------- Summary--The U.S. agricultural trade surplus in fiscal 2001 climbed to $13.9 billion from $12 billion in fiscal 2000. The $1.9-billion growth in the surplus is due almost entirely to $2.1 billion more exports compared with last year. Total 2001 farm exports of $53 billion and total imports of $39 billion compare with $50.9 and $38.9 billion, respectively, in 2000. Exports declined in September 2001 from the same month in 2000, as world demand weakened significantly. Exports--Although bulk commodity sales were down $77 million from last year, high-value exports were up $2.1 billion. For bulk commodities, the declines in wheat, corn, rice, and tobacco exports were greater than the gains in cotton, soybean, and other coarse grains. Wheat exports from October 2000 to September 2001 were $132 million below last year's sales as volume dipped by 2.5 million tons. Shipments totaled $3.2 billion and 25.3 million tons in 2001. Although wheat prices in 2001 are 18 percent higher on average than in 2000, weaker world demand and competition from other large exporters reduced U.S. sales. Wheat shipments to Egypt were down 1.8 million tons as local stocks were drawn down and subsidies for flour consumption were reduced. Also, exports to Russia, Israel, Pakistan, the Philippines, and South Korea were lower. Although corn prices in 2001 were 2.8 percent higher than in 2000, smaller volume shipments caused corn export value to drop by $92 million. Volume shipped of 48.2 million tons amounted to $4.5 billion in export value in 2001. Competition from Argentina, China, South Africa, and other exporters eroded U.S. market share. U.S. corn sales dropped to the Mideast, Japan, Russia, and South America. Soybean export value and quantity in 2001 were virtually unchanged from 2000 despite reduced shipments in September 2001. Sales in 2001 totaled 26.6 million tons, valued at $5.1 billion. Soybean prices weakened from 2000 as record supplies flooded world markets. U.S. shipments to the European Union, South Korea, and Southeast Asia fell, but rose to China and Mexico. In contrast to other major bulk commodities, cotton and linters exports in 2001 were up $271 million and 154,000 tons. Cotton exports amounted to $2.1 billion and 1.7 million tons in 2001. Cotton prices were 11 percent lower than in the past year as U.S. and world production increased. Despite competition from China, Pakistan, and Central Asia, U.S. cotton exports rose to India and other South Asian markets, as well as to Mexico and South Korea. Exports of high-value products (HVP) increased for the second consecutive year, lifting the total U.S. farm export value. HVP sales of $35.3 billion in fiscal 2001 were $2.1 billion more than in 2000. Export gains were highest for hides and skins, feeds and fodders, poultry, sugar and tropical products, tree nuts, fruits, and dairy products. Gains in sales of livestock products and poultry were largest to Mexico, Russia, and China. For feeds, horticulture, and tropical products, export gains were largest to Mexico, the Mideast, and Southeast Asia. Imports--U.S. agricultural imports, $39 billion in fiscal 2001, were up $106 million from 2000 due to larger purchases of animals and red meats, vegetables, and malt beverages. Imports of nuts and tropical products--coffee, cocoa, rubber, and gums--were all down from 2000 because of lower prices. In spite of a weaker U.S. economy, total imports still increased due in part to the strong U.S. dollar. While imports from most countries declined, imports from Canada, Mexico, Australia, and New Zealand were sharply higher in 2001. [Andy Jerardo, 202-694-5323, ajerardo@ers.usda.gov] END_OF_FILE