Larger crops in Brazil and Argentina not only reduced prices and increased competition, but also reduced these countries' demand for U.S. soybean imports, which had been a factor last year. Cotton exports show similarly large declines. Export quantity also dropped, to just 725,500 tons, a decline of 43 percent this year, mainly reflecting much smaller 1998 U.S. supplies. Much of the gain in quantity occurred in May and June 1999, as exports rose with the shipment of aid to Russia. June 1999 exports equalled 2.5 million tons, exceeding the 2.3 million shipped in May, and well over the 1.8 million tons shipped in each month in May and June 1998.
Corn has the rosiest export picture of the bulk commodities.
The United States' success in 1999 corn shipments reflects a reduction in export competition from 1998. This decrease reflects reduced demand brought on by lower foreign income growth after last year's economic recessions. Foods with increasing import shares include fresh fruits and vegetables, vegetables for freezing, nuts and preparations, wheat, rice, fats and oils, honey and edible syrups, and fish and shellfish. While exchange rates may raise or lower import shares in certain years, on average, long-term change in import shares responds more closely to growth in per capita income. Higher-value food items with relatively low domestic production are usually more responsive to income than to prices.