Feed Peas Little Changed on the Week

VANCOUVER - Apr 14/06 - SNS -- Feed pea markets finished the little changed in relatively light trading interest on both export and domestic markets.

Limited trade is reported to Spain as feed mills there fill in gaps in supplies of ingredients until locally harvested grains and other crops become available. The capacity of the United States and Canada to make additional sales is limited, with both countries reporting tightening supplies of all qualities of peas.

Underlying fundamentals in the feed complex are fairly positive, with projections of tightening corn stocks available for feed use likely to contribute to a modest improvement in demand for other ingredients. This is welcome news to the soybean complex, which is looking at the chance of a record seeded area in the United States this year and new record world availability in 2006-07.

Alaron Trading Corporation's Tim Hannagan says with ethanol demand building around the world, "demand indicators (for feed corn) remain a positive force. . . . Weather looks to now begin to take on a more important roll each week we expand planting.

"The midwest grain belt from Nebraska east to Ohio looks to receive .50 to 1.50 inches of rain Saturday and Sunday with 70% coverage. On the 19th we have another system which could bring heavier amounts. If the week end rains are ample and we look to get the midweek rains it tells the market the planting pace will slow and continue to leave the trade thinking that we will stay on a planting pace consistent with the acreage report of 78 million acres or 3.7 million under last year.

"A dry pattern would lead to a fast planting pace and lend thought more acres would be planted than 78 million acres. The wetter pattern would be initially bearish as it says top and subsoil moisture would continue to build to help the crop later if we turn dry this summer."

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