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USDA's Quarterly Export Outlook for Farm Trade

posted on May 27, 2005


Market To Market quotes the price of the Euro each week because exchange rates are critical to export-dependent American agriculture. The dollar began declining against the value of other major currencies like the Euro in 2002. And despite a modest turnaround in that trend earlier this year, analysts believes the dollar as a whole will continue to drop.

Under those circumstances, U.S. products are more affordable overseas ... and, according to USDA's latest export outlook, that provides positive news for American farm goods.

USDA's Quarterly Export Outlook for Farm Trade USDA's quarterly export outlook for farm trade is improved from last reports. U.S. agricultural exports now are forecast at $60.5 billion, up $1.5 billion over the February estimate. The surplus has been modified to $2 billion.

BEANS AT ELEVATOR

Soybeans and pork are two commodities forecast to do especially well. U.S. soybean export volume has increased because of the drought in Brazil. Dry conditions there drastically have lowered the 2004/2005 soybean crop. This has pushed prices higher and strengthened demand for U.S. soybeans. Brazil's tighter soybean supply also raises American soybean meal and oil export predictions.

SHIPPING/EXPORT

Pork exports are predicted to be a record $2.3 billion with gains in volume and unit value. Pork sales to South Korea have risen sharply, and Japanese demand continues to rise. In addition, shipments to Russia, China and Australia are increasing. Lingering bans on beef and poultry by major importers have influenced the improvements in pork exports, as well.


Tags: agriculture crops markets news pork USDA