Feed Pea Finish Firm

VANCOUVER - May 26/06 - SNS -- International feed pea markets ended the week on a firm note against underlying strength in major feed ingredient markets and a tightening fundamental picture as the 2005-06 marketing year drives toward its conclusion.

The strength of the Canadian dollar has combined with stiff competition for available supplies of field peas from western Canadian growers to lift trading levels in that country higher on the week. Attitudes toward markets were helped by the fact European markets are strong and growers in France are being shown premiums for new crop peas.

World feed markets were delivered a scare during the week over fear the H5N1 strain of avian influenza has found a way to spread from human to human, following several deaths in a single family in Indonesia. As markets became more certain it was an isolated situation, it helping stabilize the market for soybean meal and other feed ingredients. But demand news for those products is slow and lower prices might be necessary to spark buying.

On the other hand, corn and soybean are viewed as being in an oversold condition, which lays the ground work for a bounce back in price; whereas wheat markets are viewed as being overbought, which leaves them vulnerable to profit taking.

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