US expects higher agri export sales this year 

US farmers and ranchers are poised to achieve US$104.5 billion in export sales, which will be US$8 billion higher than last year, according to the USDA.

Fuelling the higher number are record sales in the first half of the fiscal year - US$59 billion.

Asia is forecast to surpass the western hemisphere as the largest regional market for US exports. China was the top market during the first six months of the fiscal year, purchasing US$10.6 billion of US agricultural products. Other leading customers include other Asian countries, the EU, Turkey and North Africa.

Higher soy exports contributed most to the improved overall trade forecast, with exports spurred by record US soy production and record early season sales to China. The fiscal 2010 forecast for oilseeds and products is increased to US$24.4 billion. Soy and soymeal account for much of the rise. Not only was the volume of soy exports up 4%, but the soymeal export forecast is raised US$700 million on higher volume and unit value. Reduced exports from South America and India have led to larger export volumes to markets in Asia and Europe.

Grain and feed exports are forecast at US$26 billion, largely due to greater volumes of wheat, rice, and feed/fodder. Wheat is raised US$300 million from the February estimate to US$5.3 billion, reflecting strong demand in Morocco and Nigeria for high-quality wheat. The forecast export value for coarse grains is increased US$100 million since February to US$9.8 billion. This is mostly due to an upward revision in sorghum volume and unit value, reflecting stronger demand from both Mexico and Japan. Corn value is unchanged as a small price boost from China's recent purchases is offset by strong competition from Argentina. Feeds and fodders are up US$500 million, primarily from distiller's dried grains (DDGS). Key markets are Canada, China, and Mexico.

Meanwhile, dairy, livestock, and poultry exports are forecast up only slightly as gains in broiler meat and hides and skins outweigh smaller exports of beef and pork variety meats.