U.S. Trade Deficit Widening on Falling Soybean Exports

DanIndustry News Release, Trade

Agriculture trade, concept with farm field landscape
The U.S. trade gap is widening because of a decrease in soybean exports and other products, according to the U.S. Department of Commerce. The deficit recorded its biggest increase in more than a year in October, suggesting trade would be a drag on growth in the fourth quarter of 2016. When adjusted for inflation, the deficit rose to $60.3 billion from $54.2 billion in September. However, Reuters says the deficient won’t have a significant economic impact. While the reversal in soybean shipments suggests trade is likely to subtract from GDP growth in the fourth quarter, consumer spending and a firming housing market are expected to keep supporting the economy. Third quarter soybean exports had increased on a surge in soybean shipments to China after a poor harvest in Argentina and Brazil. Meanwhile, exports of capital goods were the highest in October since December 2015.

From the National Association of Farm Broadcasting news service.