Feed Peas Continue to Firm

VANCOUVER - May 5/06 - SNS -- International feed pea markets continued to firm during the past week, helped by the strength of the Euro and Canadian dollar relative to the U.S. greenback.

Questions about the prospective size and status of European field pea crops are also starting to develop, given steady advances in grower bids in France over the past month.

Canadian feed pea exports are maintaining a strong pace, with several cargoes moving from Thunder Bay in April and some exporters suggesting another 90,000 metric tons (MT) will move this month through the port.

Feed pea markets are also being helped by underlying firmness in feed ingredient markets. Ethanol and other biofuels has become a more important factor in markets, attracting both fundamental and broad speculative demand. Feed market fundamentals are also helped by the belief China will switch from being a net exporter to a net importer of corn in 2006-07.

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