Despite a projected record year for U.S. ag exports, economists believe those gains will not continue into 2023.
Analysts at Aimpoint Research say there are several factors at play, including Brazil’s corn and soybean crops. They say another challenge is the Mississippi River, with meteorologists not expecting a drastic rise until next year. If that is the case, Brazil could take over the soybean market.
Researchers also point to a stronger U.S. Dollar, which makes American ag products more expensive in the global market.
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Farm Bureau says fresh fruit and vegetable imports have surged 70% since 2010, creating new competition for U.S. growers during harvest seasons.
The initiative can also introduce U.S. wheat to new potential customers, creating relationships that may continue even after food aid programs end.
The Black Sea is a major export route for wheat, corn, and other agricultural commodities. Recent attacks, however, are disrupting exports from Russia and Ukraine.
Stronger processing and feed demand are supporting China’s soybean market, while Brazil remains the dominant supplier.
The August WASDE shows tighter corn and wheat stocks, larger soybean production, and continued pressure on several livestock markets.
The latest USDA WASDE report could move grain markets with updated estimates for corn, soybean, and wheat production, ending stocks, and demand.
