Duller Mood in Feed Peas

VANCOUVER - Dec 8/06 - SNS -- International fed pea markets managed a mixed close during the past week, with a seasonal slow down in European trading interest contributing to the duller mood.

Feed ingredient markets ended the week in a nervous mood. While ethanol has changed corn fundamentals in the United States and Ontario, and is changing feed wheat fundamentals in western Canada, it is also producing vast quantities of distillers dried grain with soluble (DDGS). Similarly the rush to crush canola for use on bio-diesel is generating increased quantities of canola meal.

Prices for DDGS, in particular, have become very aggressive as the industry seeks to move that product. This has created concern in markets that it will result in reduced U.S. domestic feed corn usage, which could add to forecast ending stocks for the 2006-07 season.

The picture is not all bad for feed peas. DDGS is low in lysine and peas are good source of lysine and energy. Some companies have taken advantage of this with canola, selling pea meal and canola meal blends. Canadian imports of DDGS are rising and the U.S. industry would like to see that jump from its current 105,000 metric ton (MT). The hope is to get hog producers to start using the product.

The U.S. Grains Council intends to promote the concept widely in Canada and other parts of the world. While feed peas could be able to compliment the product, the U.S. Grains Council is not going to push the idea. It will be up to the Canadian industry to match that American marketing effort.

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