European Feed Peas Drift Lower

VANCOUVER - Jan 13/06 - SNS -- Feed pea markets posted a weaker finish in most markets during the past week, though Spanish markets expressed some concern for most ingredients in the face of weather worries associated with developing soybean crops in Argentina and Brazil.

That country is still dealing with the impact of last year's drought on local feed grain and protein production levels. This has seen significant volumes of feed peas move to that destination so far this marketing year, creating record export movement for Canada.

Looking at some factors affecting feed market valuations, the nearby delivery option for soybean meal futures finished the week's trading on the Chicago Board of Trade (CBOT) at U.S. $175.60 a short ton, down from $188.80 last week, for a second week over week decline.

Spot Canadian field pea grower bids little changed on the week, ranging up to CDN $3.75 per bushel for No 1 grade whole green peas or roughly U.S. $107.90 short ton -- representing 61.4% of the value of spot soymeal, up from 56.9% last week.

Spot yellow peas finished the week up $1.84 at CDN $123.09 per metric ton (MT) or roughly U.S. $96.40 a short ton -- representing 54.9% of the value of the CBOT's nearby contract, versus 50.1% last week; while spot feed pea bids finished the week ranging up to CDN $107 MT or U.S. $83.50 short ton -- representing 47.6% of the value of the nearby soybean meal futures contract, versus 44.0% last week.

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