U.S. crops find bigger market overseas

WASHINGTON — Exports of soybeans, rice, cotton and corn will rise in 2005, some to record levels, due to drought and other factors in competing nations, the Agriculture Department said Thursday.

A decline in global production is spurring U.S. exports, said Keith Collins, the department’s chief economist.

“We’re also seeing pretty good growth in demand around the world, and we have large supplies here in the U.S.,” Collins said.

The exception is wheat, which many countries have in large supply. Exports of U.S. wheat are projected to drop to 950 million bushels, down 100 million from earlier estimates in the face of competition from Europe, Ukraine and Russia.

U.S. wheat farmers are expected to grow slightly more wheat this year, according to estimates released by department.

But farmers are expected to produce less of other major crops. Collins said that’s natural after last year’s record crops. “We had record corn, soybean, cotton and rice yields last year, so this is more of a return to trend,” Collins said.

Demand for cotton will shrink inside the United States, but exports are expected to grow to a record-setting 14.5 million bales with a sharp increase in demand from China, where textile and apparel production is booming, the department said.

Soybean exports, meanwhile, are projected to reach an estimated 1.1 billion bushels, the highest ever, as Brazil, the major U.S. competitor, struggles with drought.