The world macroeconomic outlook for 2011 continues to support continued trade expansion with world trade expected to grow 6.8 per cent. Higher rates of return elsewhere have discouraged holding of US assets which has resulted in a falling dollar. It is anticipated this will continue because the continued slack in the US economy holds down inflation resulting in any tightening by the Federal Reserve unlikely until 2012.

Meanwhile, it is expected the world economic outlook for growth, especially for Asia and Latin America, will be solid with rising inflation. The fiscal 2011 forecast for livestock, poultry and dairy was recently raised $1.6 billion to a record $26.5 billion. Poultry exports were raised $100 million to $4.9 billion on higher unit values despite slightly lower volumes. However, for world total (without processed meat) January-March comparisons between 2010 and 2011 broiler meat is up three per cent, turkey meat is up 41 per cent and egg and egg products are down nine per cent.
Sources: Outlook for US Agricultural Trade/AES-70/May 26, 2011, Economic Research Service, USDA; USDA/Foreign Agricultural Service

Further Reading

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