30 September 2015

2015- n° 241

In August 2015, overall agricultural producer prices decreased by 1.7% Indices of agricultural prices - août 2015

Cereal prices fell in August (-10.0%) offsetting the increase in July (+11.0%). The return to more normal weather conditions in Europe and in the United States has cancelled the fears from markets of decline in yields before the harvests. In one year, the price was almost unchanged (-0.9%), at a low level, reflecting an ample supply.

Oleaginous prices had declined since June, by almost 6%, due to the slowdown of Chinese economy and the fall of the oil price (as the biodiesel, made from rape, had turned less attractive against a less expensive oil).

Oleaginous prices slightly weakened in August (–0.8% over one month and –1.6% over one year). The 2014 harvest was good, except in the Languedoc-Roussillon region. Hence, the prices of common wines, massively produced in that place, rose significantly (+13.9% yoy). Conversely, prices of PDO (protected designation of origin) wines decreased sharply (–6.5% yoy).

Fresh fruits prices increased in August compared to last year at the same period (+14.7%). Peaches price jumped as a result of a limited supply and the heatwave, which had stimulated the consumption until mid-August. Pears became more expensive as well: it was a return to a more normal situation as the price of last year was noticeably low.

Fresh vegetable prices rose (+5.8% yoy). The summer-like weather prompted the consumers to favour summer vegetables, whose prices increased in August for most of them (tomato, cucumber). Conversely, melon price decreased as the supply was too abundant to sell easily, stemming from the strong rise in yields and significant importations.

On a seasonally adjusted basis, animals prices went up in August (+0.6%). Pigs price rallied by 2.8% further to agreements with the slaughterers and the distributors under the auspices of the government, to revaluate the pigs. Milk prices went down sharply by 17.0% over one year: in 2014, the high prices and the strong Chinese demand had encouraged American and New Zealand farmers to boost their productions, however, since, the drop of Chinese importations and the Russian embargo had slowed down the global demand.

In August, intermediate consumption prices had slipped for three months in a row (–1.8% since May) reflecting the drop of energy prices (–11.0% since May). Over one year, energy cost declined by almost 20%. Capital goods prices were virtually stable in August (+0.2%).