Feed Peas Finish on Firmer Note

VANCOUVER - Mar 17/06 - SNS -- International feed pea markets ended the week on a firmer note in the face of a significantly stronger Euro and a firmer Canadian dollar.

While European feed pea markets were unchanged in local currency terms, they were up sharply in U.S. dollar term.

This was able to translate into firmness for Canadian markets because of a moderate improvement in the value of U.S. soybean meal and corn, which kept peas at roughly the same parity level as the previous week on feed ingredient markets.

Alaron Trading Corporation's Tim Hannagan remains somewhat optimistic about feed ingredient markets despite increased talk of avian influenza and localized outbreaks in more countries. This partly reflects the emergence of bio-fuel demand.

"The demand side of corn remains long term bullish through 2006 with the near term leaving friendly at best," Hannagan said. "Now, can it hold into the March 31st acreage report expected to show less acres to be planted and our quarterly stocks report which should come in lower as well.

"I still expect soy bean weakness next week and were 10 trading days ahead of the bullish March 31st reports so there is still room for some more downside. Our support line Monday crosses at 2.21. A weekly or daily close under here sets us up for 2.14 worst case scenario before March 31st."

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