From Statistics Canada
The Farm Product Price Index (FPPI) decreased 10.5% in September compared with the same month a year earlier due to lower cattle and hog prices. This was the largest year-over-year decline since the index started falling in December 2015, following 16 months of increases.
The livestock and animal products index fell 16.7% in September compared with the same month a year earlier. Lower prices for cattle and calves and hogs were responsible for the drop.
Moderating the decline were higher prices for the supply-managed commodities of poultry (+1.9%), dairy (+1.6%) and eggs (+0.8%).
The year-over-year decrease in the cattle and calves index (-28.8%) continued, as herd expansion in both Canada and the United States continued to replenish supplies. North American slaughter in federally inspected plants was up in the first nine months of 2016, the first increase for this time period since 2010.
The hogs index was down 13.8% in September compared with the same month a year earlier, in the wake of increased North American supplies. The September 1 inventory of hogs released by the United States Department of Agriculture reported a record high for the quarter. North American hog slaughter in federally inspected plants for the 2016 January-to-September period reached record levels.
The crops index fell 4.9% in September compared with the same month a year earlier, led by lower prices for grains. This was the third consecutive year-over-year decrease in the grains index, following a period of growth that started in January 2015. The International Grains Council is forecasting world grain production to reach a record high for the 2016/2017 crop year.
Lower prices for oilseeds (-1.6%), total fruits (-9.5%), potatoes (-1.9%) and total vegetables (-0.4%) also contributed to the decline.
The specialty crops index (+0.9%) was the lone crops index to increase in September on a year-over-year basis. The growth in the specialty crops index began in November 2014, bolstered by strong demand as a result of two consecutive droughts in India.
The September FPPI was down 2.5% from the month earlier, after declining 4.2% in August. Both the livestock and animal products index (-4.5%) and the crops index (-1.2%) contributed to the decrease.