Market News & Headlines >> USDA Raises Ag Export Forecast Again

U.S. agricultural exports for fiscal 2014 will reach a record $149.5 billion, up from a February forecast of $142.6 billion and up 6% from last year, USDA said on Thursday.

The agency also raised its forecast for the U.S. agricultural trade surplus by $6.3 billion to $39 billion, the second highest ever. The fiscal year started on Oct. 1 and will end on Sept. 30. U.S. agricultural imports for the fiscal year are forecast at $110.5 billion, up slightly from the February estimate and 6.4% percent above fiscal 2013.

USDA’s Outlook for U.S. Agricultural Trade report indicated the export growth is due not just to rising prices, but also to rising volume. The volume of U.S. agricultural exports, is projected to increase by 31% in fiscal 2014 over 2013.

U.S. Agriculture Secretary Tom Vilsack lauded the "increasing global appetite for high-quality, American-grown products," and said the agency would continue to tap into new markets for goods grown and made in rural America.

The forecast for grain and feed exports was boosted by $4.5 billion to $35.8 billion because of higher wheat prices and higher shipment volumes and prices for corn, partly because of less competition from Argentina. USDA now sees exports of oilseeds and products are now seen at $33.8 billion, up $2.4 billion from the previous forecast, helped by record soybean sales to China.

Fiscal 2014 U.S. farm exports to China were forecast to hit a record $28 billion, up $3 billion from the February estimate, primarily on shipments of soybeans, sorghum and distillers dried grain.

USDA raised its export forecast for livestock, poultry and dairy was by $600 million from February to a record $32.2 billion, with increases in dairy and beef shipments more than offsetting declines in pork and poultry. Projected exports of horticultural products such as fruits, vegetables and nuts were lowered $400 million to $34.1 billion, but would still be record high.

 USDA raised its export forecast for livestock, poultry and dairy was by $600 million from February to a record $32.2 billion, with increases in dairy and beef shipments more than offsetting declines in pork and poultry. Projected exports of horticultural products such as fruits, vegetables and nuts were lowered $400 million to $34.1 billion, but would still be record high.