Canadian FPPI Remains Below 2002

OTTAWA - Jan 5/03 - SNS -- Canada's farm product price index (FPPI) staged a small month over month increase during October to reach 92.6 points, but remains sharply below year earlier levels, according to the latest data available from Statistics Canada.

The crop index fell 18.7% from October 2002 to 90.1 points, marking the fourth consecutive month that the index declined. Prior to July, the crop index had risen on a year over year basis for almost three years.

The livestock index was down 4.4% from October 2002 at 96.1 points, the fifth consecutive decline since May when a cow in Alberta tested positive for bovine spongiform encephalopathy (BSE or mad cow disease).

On a month over month basis, the crop index was up 3.8% in October, as all components except vegetables and potatoes recorded increases from September. This was the first month to month increase this year as prices have been pressured down in anticipation of more normal growing conditions. The oilseed index was up 11.8% gaining support from concerns of a smaller than expected North American soybean crop.

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