Average Grain Prices Down 1.5% From 1997

OTTAWA - Sep 6/07 - SNS -- Prices received for most crop, livestock and animal products marketed by Canadian farmers rose in June, but returns for most grains, oilseeds, hogs and eggs remain below those achieved in 1997, according to Statistics Canada.

Overall, prices received in June were up 7.5% from last year, but down 1% from May. Prices for all crops were up 15.2% in June when compared with June 2006, according to the Farm Product Price Index (FPPI), as farmers received higher prices for all crops except potatoes and vegetables. After slumping to very low levels during the 2005/2006 crop year (August to July), crop prices have surged this year to their highest levels since the spring of 2004.

Overall, prices for livestock and animal products rose 2.2% in June, continuing the year-over-year increases that began in February 2007. Gains, ranging from 1.6% for eggs to 6.2% for poultry, were made in all commodities except for cattle and calves and hogs, which remained almost unchanged (-0.2%).

On a month-to-month basis, the prices that farmers received for their commodities in June fell 1.0%, as lower prices for livestock and animal products outstripped gains made in crops. The FPPI (1997=100) stood at 104.8 in June, down from the May index of 105.9.

Prices for livestock and animal products fell 3.2% in June from the May index, as all livestock commodities were down except eggs, which rose 0.5%.

Cattle and calf prices recorded a decrease of 6.3% in June, the second consecutive monthly drop. Hog prices also dipped (-2.4%) in June from May, the third decrease this year. Steady supplies, rapidly rising feed grain costs and a rising Canadian dollar are pressuring livestock prices.

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