US ag exports forecasted to reach a record $157 billion
The USDA is projecting U.S. ag exports to hit a record $157 billion for fiscal year 2021.
USDA Chief Economist Seth Meyer says China is increasing its already strong demand for U.S. products.
“That growth in exports is supported by strong rebound in Chinese demand and as we talked about that coming late in the when our view of the crop was getting smaller, the Chinese kept buying, really offering price support into the market,” he says.
The export forecast for China is a record $31.5 billion.
Meyer says China is also expected to exceed its corn tariff rate quota of 283 million bushels for the second year.
“What we have on the from the United States sold to China that is not yet shipped but needs to be shipped by August 31 is 11.2 million metric tons, also well above the TRQ,” he says.
He says the TRQ is not a rigid barrier and U.S. exports will continue to be supported by strong Chinese demand in the near term.
Meyer made these comments during the virtual USDA Ag Outlook Forum.