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USDA Projects Ag Trade Deficit Will Fall to $41.5 Billion in 2026

By Ryan Hanrahan

Agri-Pulse’s Philip Brasher reported that “USDA’s quarterly trade outlook lowered the projected trade deficit for fiscal 2025 to $47 billion from the $49.5 billion estimated in June. The deficit is projected to drop to $41.5 billion for fiscal 2026, which starts Oct. 1, because U.S. ag imports are expected to fall even more than exportsThe estimated deficit for FY26 would still be higher than FY24’s $32 billion.”

“USDA raised its estimate for FY25 exports from $170.5 billion to $173 billion, but projected them to decline to $169 billion for FY26. Imports are projected to drop from $220 billion this year to $210.5 billion in FY26,” Brasher reported. “Soybean exports are expected to drop from $21.5 billion in FY25 to $18.3 billion for FY26, down from $24.2 billion in FY24.”

“Soybean growers are being especially hard hit by Trump’s simmering trade war with China; the Chinese have yet to put in an order for this fall’s soybean crop,” Brasher reported. “ERS projects U.S. ag exports to China will drop from $17 billion in FY25 to $9 billion in FY26. As recently as FY24, China imported $25.7 billion worth of U.S. ag commodities.”

Source : illinois.edu

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