US April Exports Falter With Imports Hitting A New Record

The value of U.S. ag exports in April fell to $11.237 billion, the lowest of Fiscal Year (FY) 2019 and the smallest since September when they were just $10.315 billion. Imports of ag products rose to $12.102 billion, a new monthly record and first time that the value of imports cleared $12 billion. This resulted in a trade deficit of $865 million which would be the first monthly trade deficit for agriculture since May 2017 when it was $46 million. The April figure would also be the biggest monthly trade red ink on record. This also marked the fifth consecutive month with the surplus being less than $1 billion with that mark being exceeded only four times since January 2018. This fits with historical patterns where the biggest readings on imports typically has come in the March-May timeframe. The April data puts FY 2019 ag exports at $81.188 billion against imports of $77.252 billion for a cumulative surplus of just $3.936 billion. USDA May 30 lowered its expectation for FY 2019 ag exports to $137 billion against imports forecast at a record $129 billion for a trade surplus of $8 billion.