General Softness in Feed Peas

VANCOUVER - Jan 20/06 - SNS -- International feed pea markets declined during the past week in line with a general softness in feed ingredient markets, especially in Europe.

Alaron Trading Corporation's Tim Hannagan put it well in his week ending comment, saying, "We have demand running neutral at best. Large carry over stocks (of corn) and now a Asian lunar holiday (Chinese New Year) to slow sales into Asia near term. Only a sharp change in weather to drought like in Argentina and Brazil could uncover shorts and bring on buying."

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. $179.40 a short ton, up from $175.60 last week, ending two weeks of declines.

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. $108.60 short ton -- representing 60.5% of the value of spot soymeal, down from 61.4% last week.

Spot yellow peas finished the week unchanged at CDN $123.09 per metric ton (MT) or roughly U.S. $97.00 a short ton -- representing 54.1% of the value of the CBOT's nearby contract, versus 54.9% last week; while spot feed pea bids finished the week ranging up to CDN $107 MT or U.S. $83.90 short ton -- representing 46.8% of the value of the nearby soybean meal futures contract, versus 47.6% last week.

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