Feed Pea Markets Remain Firm

VANCOUVER - Aug 10/07 - SNS -- International feed pea markets maintained their firm tone during the past week, helped by upward price momentum in Europe.

Grower bids in both France and the United Kingdom continued to advance during the past week on account of crop production problems and strong, opening season demand for food grade peas for export.

The problems in Europe have raised hopes there will be demand for Canadian feed peas in the coming season. But, the Saskatchewan Wheat Pool recently cautioned, "Whether or not we get Europe involved in the feed market will also play a significant factor in how the balance sheet funnels out. With rising prices of DU corn and wheat the energy side of the feed formula has been rising and has supported feed values into both northern Europe and Spain.

"The East Coast freight market is not doing much to help farm-gate economics as recent quotes out of Thunder Bay to Ghent are as high as U.S. $90 metric ton (MT). Landed Northern European values minus freight work out to $4.75 bu to $5.00 bu for feed peas, which leaves little incentive with higher edibles options available."

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