September 5, 2018

China no longer ranks first for US agriculture export markets

Amidst tariff woes and the back and forth in trade battles, China has dropped from first to third as a market for US agriculture exports.

Gaining momentum after trade agreement talks over the last two weeks, Canada and Mexico are ranked first and second respectively as major US agriculture export markets.

"Agricultural exports to China are forecast to decrease by US$7 billion from fiscal 2018 to only US$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.

Contrarily, the report also states that agricultural exports to Canada and Mexico are forecasted at US$21.5 billion and US$19.7 billion.

On a worldwide scale, the Economic Research Service (ERS) predicted, "Fiscal 2019 agricultural exports are projected at US$144.5 billion, up US$500 million from the revised forecast for fiscal 2018."

The ERS added, "This increase is primarily due to higher exports of wheat and horticultural products, which offset expect declines in oilseeds, livestock and dairy product exports. Wheat exports are forecasted to go up by US$1.4 billion from the previous year to a total of US$7.1 billion as a result of high volumes and reduced competition."

The US agricultural imports in fiscal 2019 are forecasted at US$126.5 billion, US$2 billion higher than fiscal 2018 due to an increase in horticultural, sugar and tropical products, said the ERS. 
 

Source: The Fence Post