Canadian Grower Bids Keep Rising

OTTAWA - Jun 23/08 - SNS -- Prices Canadian farmers are receiving for their agricultural output continued to rise in April, with Canada's Farm Product Price Index (FPPI) reaching 118.7 in April 2008, up from the revised March 2008 index of 116.5 (1997=100).

Statistics Canada said "significant gains in crop prices offset declines in livestock prices. Prices that producers received for crops continued their double-digit increases in April 2008 compared with April 2007.

"However, prices for livestock and animal products were 8.1% below their April 2007 level, the eighth consecutive year-over-year decline as cattle and hog prices continued to decrease. Hog, cattle and calf prices have posted 11 consecutive months of year-over-year decreases. For the last 8 months, those declines have been double-digit for hog prices."

The federal agency noted that on a monthly basis, prices farmers received for their commodities were up 1.9% in April 2008 from March 2008, as the increase in the livestock index outpaced the decrease in the crops index.

The overall livestock and animal products index rose 3.5% in April compared with the revised March index as all prices, except those for dairy and eggs, recorded increases. The cattle and calf index increased 5.1% in April, only the third month-to-month increase since early 2007.

Rising feed grain prices and a strong Canadian dollar have pressured hog prices in recent months. Hog producers exported a record number of hogs in the first quarter of 2008. The hog index increased in April, as sign-up began for the Cull Breeding Swine Program announced by the Government of Canada and aimed at reducing the size of the breeding herd.

The total crops index stood at 144.2 in April, down 1.2% compared with the record March level.

Continued demand and uncertainty over new crop supplies helped maintain grain and oilseed prices at record levels. As Canadian producers start planting this year's crop, markets begin to react to weather reports in all major producing areas and their effects on the upcoming growing season and production.

Subscribers can read the full text of the article by Clicking here