Mixed Finish on Feed Peas

VANCOUVER - Oct 12/07 - SNS -- European feed pea markets finished the week on a mixed note, with markets in France and Belgium sinking to nominal levels, while those in the United Kingdom and Netherlands remained strong.

Easing export demand in France allowed shipper's to stop chasing field peas delivered to Rouen, allowing internal markets top drop back levels which better reflect opportunities on European domestic feed ingredient markets.

Canadian markets finished the week on a relatively quiet note, with little change official bids, which finished the week at CDN $184 per metric ton (MT) for farmers dressed merchandise delivered elevators or processing plants. However, there were reports of bids closer to $221 MT at various locations in western Canada.

Feed ingredient markets, in general, finished the week on a relatively strong note, with soybean meal and corn both advancing. Alaron Trading's Tim Hannagan says corn was helped by stronger than expected export demand and crop production estimates which were not as bearish as expected by the trade.

"The bullish export sales report and a crop report not as bearish as anticipated led to a higher opening on short covering and unwinding of long bean short corn spreads put on in the days prior the report. The corn market kept its 9 cent trading range made in the first 15 minutes all day," Hannagan said.

"Some technicians see the ending price settlement as near term chart bullish but it is a skewed number because it came from report release position evening up. Monday is critical. A higher close over 3.70 basis March sets us up for a test of 3.94 the top of a chart gap but if we start out lower and finish lower we will quickly test 3.44 next week. Near term were supply side bearish but long term spring contract bullish."

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