US farm exports will surge to a record $91 billion in fiscal 2008, up $7.5 billion from an estimate made in August, led largely by wheat and feed (coarse) grains such as corn, the Agriculture Department said on Friday.
"This outlook is largely supported by continued strong demand, tight markets and sharply higher prices for grains and oilseeds, and a weaker dollar," said USDA. Higher sales of everything from wheat, corn (maize), cotton, soybeans and livestock will erase the record of $81.9 billion set in fiscal 2007, which ended on September 30.
Wheat exports were revised higher to $7.5 billion, up $1.1 billion from 2007. The forecast for corn was increased to $10.2 billion from $8.9 billion. Since August, the forecast for corn exports was boosted by 5.5 million tonnes.
"While US supplies are ample, exportable feed grain supplies from competitors are limited, so competition is muted," said USDA. "US corn exports are benefiting indirectly from sharply higher EU feed grain imports and larger US sorghum exports are expected due to strong EU demand for non-GMO feed." USDA said soybean exports will total $10.4 billion in fiscal 2008, due to growing demand from China, an increase of $1.9 billion from 2007. Average price for soybeans is estimated at $393 per ton, or 40 percent more than fiscal 2007.
The forecast for fiscal 2008 exports of livestock, poultry, and dairy products is a record $17.1 billion, up $800 million, with beef and veal exports $2.4 billion of that total. "Beef export volume holds steady near 545,000 tonnes, with combined sales to Japan, Canada, and Mexico offsetting any declines for Korea resulting from the current suspension of sales," USDA estimated.
USDA's quarterly trade report also projected agricultural imports to rise to a record of $75.5 billion, up slightly from its August estimate of $75 billion. Higher prices for vegetable oils, livestock and dairy products are projected to offset lower values for horticulture, sugar and tropical products.
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