Feed Peas Generally Easier

VANCOUVER - Jun 16/06 - SNS -- European feed pea markets ended the week on a generally easier note in both local and currency and U.S. dollar terms, reflecting the proximity of harvest activity in the region.

Even so, new crop grower bids in France maintained a premium of Euros 5 per metric ton (MT) to spot markets through the week. By contrast, new crop bids in Belgium and Holland are discounted to spot.

With field pea stocks relatively tight in Canada, exporters are not chasing spot market opportunities. Their ability to do so is compromised by a seasonal lull in import demand by Spain.

The jury is still out on the depth of new crop demand. While this year's harvest should be significantly better than last year, Spain needs to replenish its internal pipeline and meet ongoing demand from livestock feeders. Imports should be down over 2005-06, but they may not fall as sharply as feared.

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