China falls first to third in U.S. ag export markets
China has fallen from first to third as a market for U.S. agricultural exports, with Canada regaining first place and Mexico second, the Agriculture Department’s Economic Research Service reported last week.
“Agricultural exports to China are forecast down $7 billion from fiscal 2018 to $12 billion as soybean sales are expected to be sharply lower due to retaliatory tariffs, which also curb demand for other products,” the report said.
“Agricultural exports to Canada and Mexico are forecast at $21.5 billion and $19.7 billion, respectively,” the report continued.
Worldwide, ERS said, “Fiscal 2019 agricultural exports are projected at $144.5 billion, up $500 million from the revised forecast for fiscal 2018.”
“This increase is primarily due to higher exports of wheat and horticultural products, which offset expected declines in oilseeds, livestock and dairy product exports. Wheat exports are forecast up $1.4 billion from the previous year to $7.1 billion as a result of higher volumes and reduced competition.”
ERS also said that U.S. agricultural imports in fiscal 2019 are forecast at $126.5 billion, $2 billion higher than fiscal 2018 due to increases in horticultural and sugar and tropical products.
The U.S. agricultural trade surplus is expected to decline by $1.5 billion in fiscal 2019 to $18 billion.