Agricultural export prices rise but still weak

Export prices rose in June, but crop prices still weak.
Export prices rose in June, but crop prices still weak.
June agricultural export prices increased 4.8 percent in June and 12.7 percent for the second quarter of 2009, the largest three-month gain since the first quarter of 2008, according to the Bureau of Labor Statistics.

Despite the advance, agricultural export prices fell 12.5 percent for the June 2008-2009 period. Meanwhile, farmers experienced higher prices for purchases of fuels, chemicals and metals. Pinched by falling incomes and higher input costs, sales of tractors and other farm equipment fell dramatically in June.

The latest world supply and demand projections from the U.S. Department of Agriculture pointed to some further weakness in crop prices if favorable crop weather continues, according to CattleNetwork.

Agriculture Secretary Tom Vilsack said that USDA will not issue final 2008 counter-cyclical payments to farmers enrolled in the Direct and Counter-cyclical Program for wheat, barley and oats because prices for these commodities have averaged well above levels that trigger counter-cyclical payments.

The final marketing year prices per bushel are $6.78 for wheat, $3.82 for barley and $3.15 for oats, USDA said.