Chinese Demand Projecting Billions for 2021 Ag Exports

LAKELAND, FL – Analysts are still breaking down the second quarter USDA trade report (released at the end of May) which laid the foundation for a $7 billion increase in U.S. agricultural exports. According to AgAmerica Lending, the expectation for the Fiscal Year 2021 ag exports now sits at a record $164 billion, due in large part to increased purchases from China.

Though Chinese demand is now leading to a projection of $35 billion in U.S. ag exports this marketing year, some of that demand is linked to unfavorable crop prospects in South America where Brazil is dealing with drought conditions.

At the end of the day, for every $5 in total ag exports, China is responsible for $1, which equals a 25 percent overall increase from 2020 and a 64 percent increase from 2019.

The top five ag commodities now include soybeans ($28.9 billion), corn ($17.2 billion), beef and veal ($7.6 billion), pork ($7.2 billion), and dairy ($7 billion).

USDA’s next Trade Report will be released on August 26.
(SOURCE: All Ag News)