February 27, 2009

US agricultural exports for fiscal 2009 are projected at US$95.5 billion, down US$20 billion from record 2008 sales, according to the USDA.

The agency said the outlook for the global economy has weakened further since November, eroding demand for all agricultural products while US grain and feed exports are pressured by large competitor supplies.

Large supplies of wheat and competitively-priced feed substitutes lead to further cuts in grain and feed unit values, and US exports of coarse grains and other feeds are lowered 2.8 million tonnes and 1.5 million tonnes, respectively, the USDA said.

Benefiting from near record import demand from China and reduced South American supply, US soy shipments are increased 3.5 million tonnes from November and are now projected slightly above last year's level, USDA said.

Weak foreign demand lowers the forecast for US exports of animal products, with particularly large decreases for pork and dairy products.

USDA said fiscal 2009 agricultural imports are raised US$1.5 billion from November to a record US$82.5 billion. However, the agency noted that weak consumer spending and shrinking domestic demand will reduce import growth to the slowest rate in many years.