Statistics Canada’s farm product price index (FPPI) for November 2007 rose from the same month in 2006 on the back of escalating crop prices, the agency reported Wednesday.
The statistician’s preliminary numbers for November 2007 point to a 3.7 per cent rise in the overall FPPI compared to November 2006, but a 2.6 per cent decrease compared to October 2007.
The year-over-year increase is due mostly to the rising indices for grains (25.6 per cent), oilseeds (32.5 per cent) and specialty crops (47.2 per cent). The indices for cattle, hogs, fruit and potatoes all dropped; the hog index, in particular, fell 29.4 per cent compared to November 2006 and 13.7 per cent compared to October 2007.
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The supply-managed poultry, egg and dairy sectors all saw increases year-over-year and month-over-month, except for eggs, which remained flat compared to October 2007.
StatsCan noted that cattle and hog prices continue to be pressured by high feed costs and the Canadian dollar, which in November rose 0.8 per cent over October levels against the U.S. dollar, and 17.5 per cent over its $US value in November 2006.
As for crops, the grains index took a 3.6 per cent dip in November compared to October, offset by oilseed, specialty crop and fruit prices.
“Continued supply concerns in many of the world’s exporting countries have maintained prices at this higher level,” StatsCan wrote, noting the limits some countries such as Russia have set on crop exports to curb inflation and deal with domestic supply concerns.
“The market focus now turns to the southern hemisphere harvest and its impact on total world supplies,” the agency wrote.
