Little Change in Feed Pea Situation

VANCOUVER - Nov 10/06 - SNS -- European feed pea markets finished the week mainly unchanged, while North American feed pea markets were somewhat firmer in sympathy with human consumption markets.

The net result is feed peas continue to find it hard to maintain prices which attract solid buying interest from livestock feeders and compound feed mills, whether in Canada or Europe.

Alaron Trading's Tim Hannagan suggests this problem will not be readily resolved because major commodity markets are over bought and are vulnerable to profit taking, which would push prices lower.

"Profit taking from over bought conditions is ever present but if we are going to stop the over consumption (of corn) leading to dwindling supplies our front month contracts will need to go high enough to cut off export business and slow domestic feed use.

"The next crop production report is the crop season's final one in January. It is surely to show lower production and ending stocks as the lowest yielding corn states have yet to bring their crop to harvest in the east. In the meantime we will watch to see if funds back away until then as no bullish production news lie ahead."

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