Weak Greenback Factor in Feed Peas

VANCOUVER - Jun 3/06 - SNS -- Feed pea markets finished the week's trading mixed, with the weakness of the U.S. dollar becoming a factor during the week in Canada and Europe.

In fact, the Canadian dollar posted its highest week ending close of the current rally, with the September futures ending at U.S. 91.06 cents. Significantly, futures markets continue to attach a premium to deferred dollars, with the September 2007 dollar finishing the week at 92.02 cents -- making it clear markets believe the Canadian dollar will continue to appreciate relative to the U.S. dollar.

This is unwelcome news to Canadian field pea growers, who want to see the dollar go into reverse so that their return from export sales can increase. European growers are starting to share their view.

The Euro also gained in strength against the U.S. dollar during the week, pressuring grower bids in France, while forcing feed pea markets in Belgium and the Netherlands to retreat slightly during the week in local currency terms.

Feed pea markets were helped, however, by a forceful close for soybean meal, corn and oat markets -- all of which were up on the week.

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