The U.S. Department of Agriculture raised its forecast Thursday for U.S. agricultural exports in fiscal year 2012 to $134.5 billion worth of goods, a $3.5 billion increase from the February prediction.

Wheat and soybean exports are strong, the USDA said in its quarterly forecast, but the biggest boosts to trade are coming from horticultural products like tree nuts as well as meat.

Exports to Mexico and Canada are at record levels, the USDA said, "while exports to China are up $1.5 billion due to demand for cotton, pork, dairy, poultry, and tree nuts."

The forecast for U.S. imports was also increased, although not as sharply. Importers are now expected to bring in $107.5 billion worth of goods, up from the February forecast of $106.5 billion.

"Increases are forecast for vegetable oils, oilseeds, oilmeal, bulk grains, and beef and veal imports," the USDA said. "Larger imports of rapeseed oil from Canada are leading the vegetable oil gains."

-By Bill Tomson, Dow Jones Newswires; 202-646-0088; bill.tomson@dowjones.com

(END) Dow Jones Newswires

May 31, 2012 18:55 ET (22:55 GMT)