June 6, 2012

US May farm prices index slides two points

The initial All Farm Products Index of Prices received by farmers in May, based on 1990-1992=100, decreased two points (1.1%) from April to 176%.

The Crop Index is down three points (1.4%) and the Livestock Index decreased one point (0.7%). Producers received lower prices for cattle, corn, milk, and wheat.

Higher prices were received for broilers, grapefruit, hay, and oranges. In addition to prices, the overall index is also affected by the seasonal change based on a three-year average mix of commodities producers sell.

Increased monthly movement of broilers, sweet corn, wheat, and grapes offset the decreased marketing of corn, cattle, milk, and soy.

The preliminary All Farm Products Index is up one point (0.6%) from May 2011. The Food Commodities Index, at 164, decreased one point (0.6%) from last month and decreased one point (0.6%) from May 2011.