US farm exports during fiscal 2007 are expected to surge to a record $77.0 billion as higher sales of corn, soybeans, wheat and livestock push the country's agriculture surplus to its highest level in three years, the Agriculture Department said on Wednesday.
In its quarterly trade report, USDA boosted its export total by $5 billion from $72 billion estimated in its August report. Imports of agricultural goods also are on track to post a record in 2007 as an estimated $69.0 billion in products will enter the country, up from an earlier estimate of $68.5 billion. The fiscal year 2007 began on October 1.
American exports totalled $68.7 billion in fiscal year 2006 while imports were $64 billion. The US agricultural market has long enjoyed a large trade surplus, but until recently the gap has narrowed as imports of goods such as cheese, wine and fresh produce have surged. The 2007 surplus is estimated at $8 billion, marking the highest it has been since $9.7 billion in 2004.
Corn was responsible for much of the increase sincellion, up $3.1 billion from the August estimate and $3.8 billion higher than fiscal 2006," the USDA said. "This improved outlook for the year is largely due to higher expected unit values for corn."
The outlook for wheat also was brighter as lower production and tighter world supplies have increased the export value to $190 per ton from $172 per ton in fiscal-year 2006. Exports are forecast at 26 million tonnes valued at $4.9 billion, up 1 million tonnes and $300 million from the August estimate.
Shipments of oilseeds and products are estimated at $12.4 billion, up $1.3 billion from the prior report and $1.7 billion from a year earlier due to increased shipments and higher prices for soybeans, soymeal and soyoil.
"An expected record 2006/07 US soybean crop, combined with a relatively small increase in South American production, should raise the US share of world trade," USDA said.
The estimate for livestock, poultry and dairy products was increased $800 million to a record $14.2 billion. US beef shipments are predicted to jump more than $200 million to $1.9 billion as volume rises 8 percent to 475,000 tonnes.