Low Prices Hurting Ag Trade

We now have the complete U.S. Ag trade numbers for the first nine months of this fiscal year October through June and the central theme running through it all.

“The continued cooling of U.S export values, which is really tied to the bulk commodities," said USDA economist Bart Kenner.

His latest trade update has overall farm export values down from a year ago by only 4%.  However, if you just look at the major bulk commodities and those accounts were about a third of all Ag exports, those export values are down 17% year-over-year.  Kenner noted that export values for wheat, corn, soybeans, cotton all down.  But not because crops are not being sold and shipped, for example, in terms of export volume.

“Corn, which we said was down 6% by value, is actually up 29% by volume."

Kenner added it's the low prices that are doing the damage.

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