Prices of agricultural commodities will remain high this year, increasing the cost of China’s imports, the US Department of Agriculture said.
In a 10-page document titled “Prospects for the US Farm Economy in 2011,” the USDA’s chief economist said wheat crops in Russia and China have been decimated by drought. If so, American farmers will be able to charge more for their crops.
China is now forecast to be the top market for US agricultural exports in 2011 with an estimated US$20 billion of purchases.
24/7 Wall Street reports that China is a major importer of a number of commodities, accounting for almost 60% of world soybean imports, 40 percent of world cotton imports and about 20% of total soybean oil imports.
These three commodities accounted for about three quarters of total US agricultural exports to China last year.