Outlook for Trade Uncertain Due to COVID Recession

WASHINGTON, DC – The year 2021 is a difficult year to forecast in terms of agricultural trade. While global economic growth is expected following the COVID-induced recession of 2020, the speed of recovery is uncertain due to differences in how individual countries will manage economic response and recovery. According to USDA, the United States starts the year in a solid position with high global commodity prices and reduced competition for several major commodities, most notably soybeans from Brazil and corn from Ukraine. Strong demand from China is expected to continue to drive U.S. corn and soybean exports. China is also expected to remain the top U.S. export destination as recovery from the two-year old African Swine Fever (ASF) will continue to require large volumes of soy and corn imports for their domestic hog herd. China’s continued implementation of the Phase One Trade Agreement should also contribute to the strong overall demand for U.S. goods throughout the year. The U.S. also expects an increase in exports from a recently signed and upgraded trade agreement with Canada, Mexico, and Japan.
(SOURCE: All Ag News)