U.S. agribusiness booms with over $174 Billion in global exports

Mar 21, 2024

By Farms.com

The U.S. agriculture sector celebrated a groundbreaking year in 2023, with exports soaring to $174.9 billion. This achievement highlights the sector's resilience and the effective strategies implemented by the USDA and the Administration to ensure American agriculture's robust presence in global markets.

Among the year's highlights were strategic trade wins, such as entering the Vietnamese market for grapefruit, enhancing ethanol exports to Japan, and the removal of various retaliatory tariffs by India. These accomplishments have opened doors to markets valued at approximately $6.4 billion, offering new opportunities for U.S. agricultural producers.

Efforts by the U.S. Codex Office ensured the establishment of new pesticide residue limits, safeguarding U.S. agricultural interests in the global marketplace. Additionally, the USDA facilitated numerous trade missions and participated in international trade shows, connecting U.S. businesses with international buyers and leading to significant sales projections.

The inauguration of the Regional Agricultural Promotion Program (RAPP) signifies a forward-looking approach to market development, focusing on emerging markets with high growth potential. This initiative is expected to enhance U.S. agricultural exports by diversifying into new markets and increasing market shares.

The USDA's commitment to global food security remained steadfast, with significant investments made through its Food for Progress and McGovern-Dole programs, benefiting dozens of countries.

Reflecting on the successes of 2023, the USDA sets its sights higher for 2024, aiming to further diversify export markets and solidify the global standing of U.S. agricultural products. This ongoing commitment underscores the importance of trade and exports in strengthening American agriculture and supporting economic growth.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.