Canada's FPPI Rose in June

OTTAWA - Aug 22/13 - SNS -- Canada's Farm Product Price Index (FPPI) rose 5.7% in June compared with June 2012, as both the crops index and the overall livestock and animal products index increased, according to Statistics Canada

"The FPPI, driven mainly by rising crop prices, has posted year-over-year increases since August 2010. Double-digit increases were recorded until December 2011," the government agency said in releasing the latest data.

The crops index rose 7.2% in June compared with June 2012, the smallest rate of increase this year. All crops contributed to the increase, except potatoes (-5.9%). Last fall, the largest combined Canada and US potato production since 2004 boosted North American supplies.

The oilseeds index continues to be a major contributor to the crops index growth, but at a slower rate. The 9.3% increase over June 2012 was the first single digit year-over-year increase since September 2012. Canadian producers seeded the second largest canola crop and largest soybean crop this spring, while in the United States, it was reported that a record soybean crop was seeded.

The livestock and animal products index rose 4.0% in June compared with June 2012, marking the third consecutive monthly year-over-year increase, changing a downward trend that had started in August 2012.

All livestock components advanced, ranging from 2.4% for cattle and calves to 8.7% for eggs.

Both the hogs index (+6.4%) and the cattle and calves index advanced, marking the second consecutive year-over-year increase, changing a downward trend that started in August 2012 for hogs and November 2012 for cattle and calves.

Egg prices have been on an upward trend since November 2010 and poultry since January 2011, supported by higher feed grain costs.

Compared with May, the FPPI rose 1.6% in June, as both the crops index (+0.6%) and the livestock and animal products index (+2.8%) increased.