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Hungarian farm gate price rise slows in February

Farm gate prices in Hungary increased 0.2% yr/yr in February. Crop prices rose 2.0% and livestock and animal product prices fell 2.8%, the Central Statistics Office (KSH) reported on Monday.

Prices started to grow in January with a 1.7% yr/yr plus after 16 months of decline. The January figure was revised down on Monday from the preliminary 3.6%. Crop prices rose 4.4% yr/yr in January instead of the preliminary 7.5% while livestock and animal product prices fell an unchanged 2.3%.

The increases were still from a low base, as farm gate prices fell 27.1% yr/yr in February 2009 after a decline of 27.9% yr/yr in January 2009.

Farm gate prices dropped yr/yr every month between August 2008 and December 2009. The drop slowed to 1.6% yr/yr in December.

Crop prices rose now for the third month in a row with potato and vegetables gaining the most, 11.7% and 7.0% respectively, while prices of oil seeds decreased 2.8%. Cereals cost 1.0% more than in February 2009.

The overall increases came after a 1.6% twelve-month increase in December, the first twelve-month increase posted since July 2008.

Wholesalers bought wheat from farms for HUF 29.30/kg on average after HUF 29.00/kg in January, and maize for HUF 29.60/kg after HUF 29.70/kg in January.

Livestock and animal product prices has declined steadily yr/yr starting January 2009. The twelve-month decline accelerated somewhat from January.

Farm gate prices fell 9.5% in 2009 as crop prices fell 12.7% and livestock and animal product prices fell 4.6% on 2008. (MTI-ECONEWS)