Feed Peas Mixed on Week

VANCOUVER - May 25/07 - SNS -- European feed pea markets finished the week mixed on spot markets, but with new crop shipping positions showing some strength.

New crop markets are affected by several factors, including: worries about the impact a lower seeded area in France; the effect of dry conditions on yields; and the impact of strong demand from the Indian subcontinent on prices.

Markets were also helped by general strength in corn and soybean meal futures during the past week. Pulse Canada's Gordon Bacon sees this as an encouraging development, along with strong demand for agricultural commodities by the energy sector.

"In the bio-fuel era when protein prices will be greatly influenced by DDGS and oilseed meal, the starch component of peas becomes even more important as it is the energy component on which the livestock feed has to compete with the biofuel sector," Bacon said.

"Perhaps this strong market demand for energy, and offsetting weaker prices for protein, will alter the long-standing rule of thumb that peas at 2/3 the price of corn and 1/3 the price of soymeal would be competitive in the animal feed market from an energy and protein perspective."

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