Field Crop Values Off in August

OTTAWA - Oct 22/08 - SNS -- Canadian farmers saw the first effects of harvest selling pressure in August, with prices paid during the month slipping 3.1% below the previous month as solid declines in field crop values more than offset gains in the livestock sector, according to Statistics Canada.

On a year-over-year basis, prices received by producers for crops were up 17.0% in August compared with August 2007, maintaining the double-digit increases that had begun in November 2006. However, both grain and oilseed prices dropped in August compared with July. Crop prices have found support from continued demand and uncertainty over new crop production. However, as North American producers start to fill their bins with this year's harvest, reports of higher production has put recent downward pressure on grain and oilseed prices.

The overall August prices for livestock and animal products increased 6.5% over their August 2007 level, as all commodities recorded an increase. August marked the first year-over-year increase in the hog index since May 2007. The lower Canadian dollar and continued demand provided support for hog prices. In August, the Canadian dollar lost 4.1% of its value in relation to the US dollar, pushing it to the lowest average level in 12 months.

             Canada -- Farm Product Price Index - Aug 2008
                             (1997 == 100)
                    Aug 2007   Jul 2008   Aug 2008     Annual    Monthly
                                                       Change     Change
FPPI                   109.9      125.6      121.7     10.74%     -3.11%
All Crops              113.8      146.0      133.1     16.96%     -8.84%
Grains                 149.2      175.2      150.7      1.01%    -13.98%
Oilseeds                98.7      155.8      143.6     45.49%     -7.83%
Specialty crops        117.9      189.6      198.3     68.19%      4.59%
Fruit                  112.5      117.7      116.9      3.91%     -0.68%
Vegetables             113.6      117.2      116.2      2.29%     -0.85%
Potatoes               169.9      174.3      198.6     16.89%     13.94%
Livestock and products  105.4     107.9      112.3      6.55%      4.08%
Cattle and calves      103.6      109.0      108.3      4.54%     -0.64%
Hogs                    75.2       73.5       84.9     12.90%     15.51%
Poultry                102.9      116.0      118.2     14.87%      1.90%
Eggs                   102.6      108.7      111.2      8.38%      2.30%
Dairy                  137.0      135.9      141.1      2.99%      3.83%
SOURCE Statistics Canada