Feed Pea Markets Hold Steady

VANCOUVER - Mar 24/06 - SNS -- International feed pea markets were steady in local currency terms in mort countries, though they were down in U.S. dollar terms because of the strength of the dollar versus other major currencies.

Demand for North American feed ingredients is also experiencing a seasonal slow down on account of the availability of new crop soybean meal and corn from Argentina. Markets for major feed ingredients are also starting to worry about the contents of the March 31 USDA seeding intentions and stocks in all positions reports, notes Alaron Trading Corporation's Tim Hannagan.

"Next week the market talk shifts to what the Friday, March 31st planted acreage and quarterly stocks report will show. The common thinking as of today is that the (corn) stocks report will come in lower due to good demand and usage, and the (corn) acreage to be planted number somewhere from 1.5 million acres less to 3 million acres less corn to be planted. Brokerage polls will show up Monday to give us on average guess.

"Since large trading funds have taken off a good percentage of long positions the last three weeks we could see some buy back in, on anticipation of a bullish report day. The only negative side would come early week if wet weather is called for in wheat fields breaking down wheat prices, corn would follow but it would be a short lived break for corn," Hannagan said.

Subscribers can read the full text of the article by Clicking here