Feed Peas Watchful of World Economy

VANCOUVER - Mar 2/07 - SNS -- International feed pea markets held their value during the past week despite general weakness in the feed ingredient complex.

Rapid development of the bio-fuel sector has been a boon to prices for primary agricultural commodities, but it also leaves the sector vulnerable to shifts in the economic performance of the world's major economies.

The new found relationship between agricultural values and the underlying world economy was brought home during the past week as worries about the economic outlook for China depressed stock markets, spilling over into the outlook for the energy sector and affecting values for corn and soybeans.

"Large equity funds again like on Tuesday would turn to their huge profits in long corn futures to sell and cover their stock woes," explained Alaron Trading Corp.'s Tim Hannagan. "Large equity funds around the world have so many billions of dollars invested across the board from pork bellies, cotton, gold, sugar to all the grains that this intermingling has a domino effect through our exchanges."

The North American feed pea sector was given a helping hand by researchers at North Dakota State University who told the recent Saskatchewan Beef Symposium in Saskatoon, Saskatchewan that feeding peas to cattle improves the flavor and tenderness of beef.

Vern Anderson said there were dramatic improvements in meat quality when steers were fed a diet contained 10% rolled or cracked peas in the 76 days prior to being slaughtered. More significant improvements were noted if the proportion of peas in the diet was increased to 30%.

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