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Thursday, June 10, 2021

Agriculture Bucked Overall Trade Trend In April

While U.S. exports in general gained against imports during April, trimming the overall U.S. trade deficit compared with March, U.S. agricultural exports declined in April to $14.5 billion from $15.3 billion in March.

Imports, however, held nearly steady at $14.4 billion after being at $14.6 billion in March. That left agriculture with a surplus of $189 million, down from $774 million in March.

That brings cumulative U.S. agricultural exports so far in Fiscal Year (FY) 2021 to $107 billion against imports of $91 billion for a surplus of $15.7 billion.

For FY 2021, USDA forecasts U.S. agricultural exports to total $164 billion against imports of $141.8 and result in a surplus of $22.2 billion. If USDA's forecast is on the mark, U.S. agricultural exports would have to average just $11.4 billion for the five remaining months of FY 2021 and imports $10.1 billion.

A decline of that degree imports would be somewhat surprising since the value of imports has not been that small since September 2017 while U.S. agricultural exports were under $11 billion for the April-July period in 2020.