U.S. agricultural exports in June fell to $9.96 billion, the smallest since May 2016 and down nearly 4% from May, while imports eased to $11.09 billion, down 2.5% from May, setting a new monthly record trade deficit of $1.13 billion.
This marked the second month in a row for a new record trade gap for the sector that has historically recorded trade surpluses on a monthly and annual basis. June was the fourth month in a row with a trade deficit and marked the fifth out of the last six months that has happened.
The results brought cumulative ag exports for Fiscal Year (FY) 2020 to $102.22 billion against imports of $100.49 billion for a trade surplus of just $1.734 billion.
In order to meet USDA's FY 2020 ag export forecast of $136.5 billion, exports would now have to be average $11.43 billion over July-September.
To meet the ag import forecast of $130.2 billion, imports would have to average $9.9 billion over July-September.
Both forecasts will be adjusted in USDA's update due August 26, with the export outlook likely to be trimmed and the import forecast expanded, setting the stage for an annual trade deficit for agriculture, something that has not happened based on data going back to the mid-1970s.
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