Feed Pea Market Prices Steady

VANCOUVER - Jan 27/06 - SNS -- Few changes were reported in major fed pea markets around the world, with Europeans holding the line on price in the face of modest fluctuations in the value of the Euro versus the dollar.

However, while feed pea markets ended the week virtually unchanged in all major markets, major feed ingredient markets remain unsettled. Alaron Trading Corporation's Tim Hannagan notes, "We need better (corn) demand numbers to be bullish, probably in the 42 to 48 million bushel area weekly."

The latest weekly sales figures from USDA exceeded trade expectations, but it "is cushioned by knowing east Asian feeders bought two weeks or more supplies ahead of schedule -- as next week's Asian Lunar New Year Holiday will have grain buying channels at a standstill."

A long term negative for feed peas is that the long term outlook for soybeans "looks bleak. South American crops still look to come in well over a year ago. Early talk has the U.S. planting 2..8 to 4 million acres more beans while demand runs behind a year ago. But the near term can still push higher if weather turn and stays hot and dry in south America into March."

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