26 September 2006

2 minute read

North America

Prices for crops fell 9.5% from July 2005, as prices for all crops except potatoes were down from year earlier levels. Potato prices continued their upward trend which has run for most of the 2005/2006 crop year while grains, oilseeds and specialty crops continued their downward trend that began in November 2004.

Meanwhile, prices for livestock and animal products were 0.2% lower compared with July 2005. Lower hog and cattle and calf prices offset higher prices from the supply managed commodities — eggs, poultry and dairy.

The Farm Product Price Index stood at 94.3 (1997=100) in July, down 1.9% from the revised June index of 96.1.

Prices farmers received for crops edged down 2.8% in July from a month earlier as grain, specialty crop and vegetable prices fell. With ample supplies available for the 2005/2006 crop year, the grains index has oscillated between 66.8 and 70.1 during the first seven months of 2006 as forecasters speculate on new crop production.

On the other hand, oilseed prices continued upwards as the index rose 1.3% in July, the fifth consecutive monthly increase. Prices found support from yield-reducing weather concerns and the decline of the Canadian dollar.

Potato prices rose 3.3% in July, the eighth monthly increase since November 2005. Reduced production in 2005 had helped boost prices over the winter and spring.

Prices farmers received for livestock and animal products fell 0.9% in July from a month earlier, as dairy, hog, cattle and calf prices dropped.

After climbing to their highest level in the last 10 months in June, hog prices edged down 1.1% in July.

Cattle and calf prices were 0.2% lower compared with June. After increasing 14.5% in July 2005, when the border re-opened to restricted trade of live animals, the month-to-month changes for the index have fluctuated from a 2.3% decline to a 2.7% increase.

To view the full report including table click here .