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Ag export forecast raised slightly

The USDA has raised its export forecast slightly. That’s after an earlier forecast that exports were to be down $20 billion to $95.5 billion. The new forecast is for exports tobe at $96 billion, primarily because of $1.5 billion jump in oilseed exports.

“We’ve been watching over the last few months how China continues to import soybeans and so these numbers reflect that and the fact that we have higher prices than what we were seeing acouple of months ago,” said Joe Glauber, chief economist for the USDA, in an interview provided by the agency.

That’s combined with small boosts in export prospects for corn and horticultural products, offsetting declines in exports fordairy products and for wheat.

“We’ve lowered those [wheat export forecasts] about $1 billion from the February forecast, mainly because of larger global supplies and a lower unit value, that is lower prices we’ve seen for wheat,” he said.

Glauber says another reason for reduced exports is that the weakened world economy has reduced trade globally. However, that’s also bringing down expected imports of foreign agricultural products raising the U.S. agriculture trade surplus by $2 billion to $15 billion.