USDA is projecting that U.S. agricultural exports for FY ’16 will reach $125 billion which is 10.5% lower than last year, with one-third of the decline coming from reduced sales to China.

The reduction in value this year compared to FY ’15 is due to lower prices for grain and feed exports. Export volumes are forecast to be down for coarse grains, rice, soybeans, soybean meal and cotton. Higher export volumes are expected for wheat, beef, pork and broilers. Pork exports are projected to increase 4% and imports decline by 10%. Beef exports are projected to increase 9% and imports to decline by 16%.

However, livestock products are estimated to drop $2.2 billion from last year, to $16 billion, due to lower prices. USDA is projecting that FY ’16 grain and feed exports will decline by $4.4 billion compared to FY ’15 due to lower volumes of corn and feeds and fodders, lower prices for wheat and increased competition from other suppliers. Soybean exports are projected at 46 million metric tons, which would be the second highest level ever.