September Prices Slipped in Canada

OTTAWA - Dec 5/06 - SNS -- Canadian farmers received slightly less for what they marketed in September than was the case the previous year, reports Statistics Canada.

Overall, producers received prices for crops that were 4.0% below levels in September 2005, continuing the general downward trend in year-over-year price changes since the summer of 2003, according to the Farm Product Price Index (FPPI). Farmers received lower prices for all crops except oilseeds, specialty crops and potatoes.

Prices for livestock and animal products were 0.3% below the year earlier level. This was the first decline for the overall livestock and animal products index in the last five months. The continued slide in hog prices and a small decrease in poultry prices were mainly responsible for the decline.

On a monthly basis, prices farmers received for their commodities dropped 1.3% in September from August, as the decline in the overall crops index outstripped the slight increase in the livestock and animal products index.

The FPPI stood at 94.0 (1997=100) in September, down from a revised August level of 95.2. Decreasing in four months of the first nine months this year, the index has ranged from 93.5 to 95.2.

The overall crops index was lower in September compared to August because of lower grain, oilseed and potato prices.

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