Financial Times writers Colby Smith and Stephanie Stacey reported yesterday that, "The dollar hit a three-month low on Tuesday and US Treasury yields slid as investors grew increasingly confident that…
Last week, the USDA’s Foreign Agricultural Service (FAS) released its 2022 U.S. Agricultural Export Yearbook, a statistical summary of U.S. agricultural commodity exports. Today’s update includes highlights from the report, with a focus on corn, soybeans and wheat.
The Yearbook stated that,
In 2022, U.S. exports of farm and food products to the world totaled $196 billion, topping the 2021 total (and previous record) by 11 percent ($19.5 billion). Most of this gain was due to historically high prices, as the overall agricultural export volume of bulk commodities decreased by 6 percent year-over-year.
“Soybeans, corn, beef and beef products, dairy products, cotton, and tree nuts were the top export commodities, comprising more than half of U.S. agricultural export value.”
More narrowly with respect to corn, FAS explained that, “U.S. corn exports were valued at $18.6 billion in 2022, the second-highest year on record. Strong corn import demand in the European Union (EU) and China coincided with tighter exportable supplies in Ukraine, supporting record-high global commodity prices in 2022. With strong U.S. corn production and larger exportable supplies, exports to China were up modestly in value from the previous year and reached a record $5.3 billion. China was once again the largest destination for U.S. corn. Exports to the top three destinations, China, Mexico, and Japan, accounted for 71 percent of the total. The value of U.S. exports to Canada grew significantly due to the drought on the prairies, which reduced the availability of Canadian feed supplies.”
Regarding soybeans, the Yearbook noted that, “In 2022, the value of U.S. soybean exports to the world reached a record $34.4 billion, up 26 percent from the previous record set in 2021. Export value was mostly driven by growth in prices, but volumes also rose significantly on strong protein demand in most top export markets. China remained the largest export destination, with demand growing following recovery from ASF alongside general economic recovery. Most of the remaining export growth came from Mexico, the EU, Egypt, and Japan.”
While discussing wheat exports, FAS pointed out that, “In 2022, the value of U.S. wheat exports to the world reached $8.5 billion, up 18 percent from 2021 due to higher unit values. The top three markets, accounting for 40 percent of sales, were Mexico at $1.6 billion, the Philippines at $920 million, and Japan at $914 million. Export unit prices, up 35 percent from the previous year, more than offset lower export volumes. The United States faced tight supplies and increased international competition amid higher prices.”
The Yearbook also noted that, “China remained the top destination for total U.S. agricultural products with a record $38.2 billion in sales, 16 percent above 2021, led by increased imports of soybeans, cotton, and beef. Overall, there were 30 markets where U.S. exports exceeded $1 billion – an increase from 27 markets in 2021.
“Mexico remained the second-largest export destination in 2022, narrowly surpassing Canada, with both countries importing more than $28 billion. Soybeans, dairy, pork, and wheat showed the largest year-over- year increases to Mexico, pushing up total exports by 12 percent. In 2022, Canada was the third-largest export destination for U.S. agricultural products, with exports also increasing 12 percent compared to 2021, led primarily by a surge in shipments of corn and ethanol.
“The top six export markets continue to account for two-thirds of total U.S. agricultural exports to the world. Exports to all six countries were up compared to 2021. The largest percentage increases occurred in the emerging economies of Türkiye, India, Egypt, the DR, and the Philippines.”