28 April 2016

2016- n° 111

Overall producer prices of agricultural products increased by 1.5 % in March 2016 Indices of agricultural prices - March 2016

In March 2016, overall agricultural producer prices picked up (+1.5% after −0.9% in February). Over one year, they decreased by 1.4%.

Cereal prices kept on decreasing in March (−2.0% over the month and −16.4% since November 2015) reflecting the abundant global supply and anticipations of significant crops to be harvested in the Northern hemisphere.

Oleaginous prices continued to fall too (−1.2% over the month and −10.2% since November 2015). Less expensive oil reduced the interest of hydrocarbon substitution by oleaginous. Moreover the drop in Chinese importations weighed on prices.

Potatoe prices doubled in February over one year. The 2015 crop reached its long-term average whereas the previous one was exceptional.

Fresh fruits prices slightly increased in March (+0.8%). The strawberry demand was weak in the beginning of the season, weighing on price. On the other hand pears ans apple sold more easily. Vegetable prices jumped compared to last year (+22.7%), noticeably driven by cauliflower whose price has tripled. The mild temperatures in the end of 2015 had hastened the production of this vegetable, whose volume harvested in March fell.

On a seasonaly adjusted basis animal prices declined over one month (−1.2%). Big cattle prices were almost stable this month (−0.1% ) and lessened over one year (−1.6%), reflecting a sluggish demand. Pig prices dropped (−5.5% over the month) due to, on the supply side, Spanish competition, and, on the demand side, to a slight switch in consumption toward lamb upon Easter. For this reason sheep prices rallied by 2.3% in March.

Cow milk price sank by 9.0% over one year, as the supply saturated the demand. Since the end of the quotas, the Northern European countries indeed increased their productions, whereas the Russian embargo and the downturn in Chinese importations limited the demand.

In March, intermediate consumption prices stopped declining due noticeably to picking up energy prices (+4.5%). Over one year, it dwindled by 4.1% due to energy (−16.0%), fertilisers (−7.8%) and feed (−5.1%). Capital goods prices increased by 0.2% over one month and by 0.9% over one year.