The Majority Of U.S. Agricultural Exports, By Value, Go To Five Key Markets

Apr 24, 2017

The United States exported $135 billion worth of agricultural goods in 2016. This is down from a record of $150 billion in 2014. While the Nation exports agricultural goods to most countries worldwide, a significant share goes to major trading partners. In 2016, 61 percent of the value of agricultural exports went to Canada, China, Mexico, the European Union (EU-28), and Japan.

The dominance of key markets is not a new phenomenon. In fact, these five destinations have accounted for close to 60 percent of agricultural export value since at least 2000. In the case of Canada and Mexico, proximity plays a large role in its trade relationship with the United States. Additionally, regional trade agreements increased trade between the country and its nearest neighbors.

The large share of trade going to China, Japan, and the EU-28 is influenced by the sheer size of the economies involved. The EU-28, China, and Japan are the three leading economies after the United States in terms of gross domestic product, and each country accounts for a significant share of global imports of agricultural goods. This chart is drawn from data in the Foreign Agricultural Trade of the United States (FATUS) data product, updated in April 2017.

The majority of U.S. agricultural exports, by value, go to five key markets

Source:usda.gov

Video: "Perfectly Timed" Rains: Above-Trend Corn and Soybean Yields??

Futures and options trading involves risk of loss and is not suitable for everyone.

Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

?? Stay Updated: For ongoing insights into these issues affecting agriculture, make sure to subscribe to our channel. We bring you the latest information to help you understand the dynamics affecting global agriculture and markets.

?? Join the Conversation: How do you think these developments will impact global agricultural markets? What are your views on the current weather patterns affecting crop conditions? Share your thoughts in the comments below. Your input is crucial for our discussions.