(NAFB) – The USDA cut its farm exports forecast in 2022, blaming weaker soybean demand from China and lower soybean prices.

The Economic Research Service says it now expects American ag exports to hit $175.5 billion in the fiscal year 2022, down from the August forecast of $2 billion. The agency says soybean exports will be down $3.9 billion next year for a total of $28.4 billion. Soybean meal exports were forecast to slump by $800 million to $4.9 billion due to lower prices.

Looking ahead, China is expected to remain as the largest U.S. agricultural market, with exports forecast now at $36 billion, a $3 billion drop from USDA’s August prediction. The drop in soybean exports should be at least partly offset by increasing livestock, poultry, dairy, cotton, and ethanol exports.

USDA predicts corn, sorghum, and rice exports will drop by $100 million each. Wheat exports are unchanged from August at $7.1 billion.