Export Feed Peas Weaken

VANCOUVER - Jul 7/06 - SNS -- European feed pea markets finished down on the week in local currency terms, reflecting the availability of new crop product from growers in France and other parts of the continent.

Markets are also influenced by easier demand from Spain and prospects of a massive increase in North American field pea production because of record seeded areas in both Canada and the United States. U.S. field pea area will be revealed in the July 12 crop report from the USDA and is expected to show at least a 40% increase over last year.

Alaron Trading Corporation's Tim Hannagan noted major feed ingredient markets remain volatile in the face of a developing and sometimes difficult to predict weather situation.

"There are three main models of weather projection that weather gurus use to project near to longer 10 day patterns of weather.  The American, European and Canadian model.  It has been the American model that has been flip flopping the last three days.

"On Tuesday night or 1:00 AM Wednesday morning the American model called for  rain in our dry western grain belt on July 10 and 11 next Monday and Tuesday.  This had corn and beans sharply lower on Wednesday market opening.  Then at 1:00 AM Thursday morning the American model turned drier for the 11 and 12 and Thursday saw sharply higher corn and bean prices.

"As fate should have it the Friday 1:00 AM update turned wet again giving up 5 cent declines in corn, 8 to 10 in beans and 5 lower in wheat while the European and Canadian all have just marginal rain at best.  One thing is certain, some rain will fall across our western corn belt Monday and Tuesday but that appears to be priced in today (July 7). When we come in Monday the trade will price in the 6 to 10 day outlook."

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