Farm prices swoon in November

The deflation in the commodities market was reflected in the USDA's agricultural prices report:

November Farm Prices Received Index Declined 12 Points

The preliminary All Farm Products Index of Prices Received by Farmers in November, at 139 percent, based on 1990-92=100, decreased 12 points (7.9 percent) from October. The Crop Index is down 16 points (9.5 percent) and the Livestock Index decreased 2 points (1.6 percent). Producers received lower prices for soybeans, corn, lettuce, and hogs and higher prices for tomatoes, potatoes, cucumbers, and cantaloups. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of milk, cattle, cotton, and cottonseed offset decreased marketings of soybeans, potatoes, peanuts, and lettuce.

The preliminary All Farm Products Index is down 2 points (1.4 percent) from November 2007. The Food Commodities Index, at 140, decreased 9 points (6.0 percent) from last month and decreased 5 points (3.4 percent) from November 2007.

Prices Paid Index Down 4 Points

The November Index of Prices Paid for Commodities and Services, Interest,Taxes, and Farm Wage Rates (PPITW) is 183 percent of the 1990-92 average The index is down 4 points (2.1 percent) from October but 18 points (11 percent) above November 2007. Lower prices in November for diesel fuel, feed concentrates, complete feeds, and gasoline more than offset higher prices for feeder pigs, mixed fertilizers, herbicides, and insecticides.