By Farms.com
The U.S. Department of Agriculture's latest trade outlook for fiscal year 2024 brings concerning news for the agriculture sector, highlighting a record-setting trade deficit of $30.5 billion. The decrease in agricultural exports, now expected to be $170.5 billion, reflects a significant $8.3 billion drop, primarily influenced by the declining trade in soybeans and their products.
Adjustments from last year’s report show a slight uptick in both exports and imports of $1 billion, with notable shifts in trading partners. Despite a downturn in exports to China by $800 million, there's an uptick in trade with Mexico and Canada, with Mexico nearly equaling China as a leading destination for American agricultural exports.
The report identifies growth areas within the export sector, including livestock and dairy, projected to increase by 4% or $1.4 billion, and grains, with a $700 million hike. Nevertheless, these positive trends are somewhat overshadowed by a $1 billion, or 2.6%, decline in soybean exports, highlighting the sector's vulnerabilities to price and demand fluctuations.