Agricultural exports in FY 2016 are forecast at $125.0 billion, $6.5 billion below the November projection and $14.7 billion belo w FY 2015 exports. Lower prices, strong competition, and reduced demand account for most of the decline.
Grain and feed exports are forecast at $27.2 billion, down $1.4 billion from the November forecast as strong competition reduces volumes and ampl e global supplies reduce unit values of corn and wheat. Oilseed and product export s are forecast at $25.4 billion, down $900 million from the previous forecast in res ponse to lower soybean and soybean meal export volumes and prices. A strong dollar re lative to weaker currencies in Brazil and Argentina has reduced U.S. competitiveness. Cotton exports are forecast at $3.2 billion, unchanged from November.
Livestock, poultry, and dairy exports ar e reduced $2.5 billion to $25.7 billion as lower prices drive declines for virtually all products. Beef is reduced $200 million to $5.4 billion as lower unit values more th an offset higher volumes. Due to weak demand and lower unit values, poultry and products are decreased $400 million to $4.8 billion, while pork is forecast $100 million lower to $4.3 billion. Dairy is reduced $700 million to $4.9 billion as e xporters face weak import demand, low prices, and strong competition from the EU. Hides, skins, and furs are lowered $500 million to $2.0 billion on depressed unit values.
Thursday February 25, 2016/ USDA/ United States.