USDA lowers farm exports forecast

-The Hagstrom Report

The Agriculture Department on Friday lowered its forecast for U.S. farm exports for the year.

“U.S. agricultural exports in fiscal year (FY) 2020 are projected at $136.5 billion, down $3 billion from the February forecast, primarily due to reductions in bulk commodities including soybeans, cotton, corn, and wheat,” USDA’s Economic Research Service and Foreign Agricultural Service said in a joint report.

“The COVID-19 outbreak has created a shock to world economies that will cause an unusually high level of uncertainty for the foreseeable future,” the report said.

“Sales to China are rising but slower than projected when the ‘phase one’ trade agreement with Beijing took effect in February, and far from the tripling necessary to satisfy the purchase levels specified in the pact,” the Food & Environment Reporting Network said in an analysis.