Data from the UK highlighted a squeeze on farm margins caused by the pullback in agricultural commodity prices, leaving inflation in major costs far higher than in farm products.

Prices of UK agricultural products rose, on average, by 10.4% higher in the year to September, the month that the correction in farm commodity prices was at its steepest, farm ministry data showed.

However, they were outpaced by costs, which rose 11.3% to a record high, led by a 26% rise year on year in fuel prices, which the ministry said saw a "dramatic rise… earlier in the year".

Fertilizer prices rose even faster, by 34%, including a jump of more than one-half in costs of nitrogen nutrients.

'Sheer combination'

Prices of fuel, feed and fertilizer were "now above the previous 2008 peak", the National Farmers Union said.

"These figures illustrate that variable and fixed costs for fuel, feed and fertiliser have all been on the rise over the last two years, with this sheer combination of factors pushing the [agricultural prices] index to its record high," Tom Hind, the NFU director of corporate affairs, said.

The data also come amid a renewed discussion amid falling markets over costs of production, which are often signal a floor to prices of agricultural commodities, although corrections can overshoot in times of enhanced pressure.

'Pretty close to breakeven'

One global commodities house said that "there seems to be a grower backlash" thanks to the extent of crop price falls.

"Put simply they aren't happy to sell. The grower, in places as far afield as South America and Australia, is now facing ex-farm values in locations that are far from the ports of less than the equivalent of £100 a tonne," about $156 a tonne, or $4.25 a bushel.

At Australia & New Zealand Bank, agricultural commodities director Scott Briggs said that Russian farmgate wheat prices were "around $130-150 a tonne, where they are now is getting pretty close to breakeven".

This dynamic was behind the stasis of Russian prices at about $250 a tonne "for the last month or so" in tenders by Egypt, the top importer, even against tougher competition from Argentine and French supplies.