Overall agricultural producer prices rose by 0.5% in October
Cereal prices recovered in October (+5.4%, after –14.7% between July and September), despite an abundant supply confirmed by the new crop in the Northern hemisphere, according to Insee.
The market reacted noticeably to the potential consequences that would arise from the drough in Australia and from the floods in the United-States.
Oleaginous prices picked up by 3.4 % in October due to the drop in production of rape, the main oleaginous grain produced in France. Moreover, the palm oil price increase was transmitted to rape, these two products being partially sustituable.
Fresh fruits prices increased sharply over 12 months (+18.4%), and noticeably apple price (+27.0%). The low apple prices last year reflected the congestion in the supply in relation with an abundant European crop and the Russian embargo since August 2014. Pears prices went up as well over one year due to a decline in European supply.
Fresh vegetables prices increased by more than 13% yoy. The increases in prices of chicory (+22%), lettuce (+45%) and leek (+14%) would come from less significant harvests. Consumers kept turning to tomatoes whose price rose also (+7%).
On a seasonally adjusted basis, prices of animals were almost stable this month (+0.1%), as the rise in calve and poultry prices offset the falls in pig and large cattle prices.
Egg prices slid by 8.8 % after surging the previous month in relation with the slump in American supply affected by an avian flue episode. Milk price plummeted by 16% over one year reflecting the global overproduction combined with the slowndown of the Chinese demand. ■