Grower Bids Generally Lower in October

OTTAWA - Jan 3/08 - SNS -- Prices paid to Canadian farmers were generally lower in October, though they remain well above year earlier levels, according to Statistics Canada.

Declines both the overall crops index and the livestock and animal products index pushed the preliminary Farm Product Price Index (FPPI) down from a revised 107.1 points in September to 103.3 (1997=100) in October.

Prices for crops were up 16.5% in October compared with the same month a year earlier, as only fruits and vegetables recorded decreases. Prices for grains, oilseeds and specialty crops continued to surge, while potato prices were up 6.2%. However, the index was down from September for the first month to month decrease since January, with all commodities except oilseeds and specialty crops recording declines.

Grain prices edged down in October, while oilseed prices were unchanged. However, poor growing conditions in many of the major crop producing countries have yielded short supplies, and continued demand from the biofuel sector has helped to maintain the recent higher prices.

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