Feed Peas Firm, Fresh Demand Slow

VANCOUVER - Apr 7/06 - SNS -- The world's feed pea markets ended the week on a firm note in U.S. dollar terms even though protein meal markets were weaker against prospects of bulging world soybean production.

These losses are offsetting any positives from rising corn prices. That market needs to advance over the short term in an effort to seduce growers into planting more corn than intended this spring. If that mission is accomplished, prices would be expected to slip back to a lower level later in the growing season.

Even so, strong corn markets are forcing livestock feeders to explore opportunities with other feed ingredients, something would could provide underlying support to the field pea complex in the coming season.

With plantings expected to advance in the United States and some Canadian companies looking for up to a 5% rise in plantings in that country, markets need to see an expansion in feed usage to avoid finishing the 2006-07 marketing year with a burdensome carryout.

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