Easier Tone in European Feed Peas

VANCOUVER - Oct 19/07 - SNS -- Feed pea markets in Europe finished the week on an easier tone on the Continent, but steady in the United Kingdom.

The slow down in opening season food pea exports from France is taking the heat off grower markets in the country, allowing bids to retrace much of the ground taken through the first week of October.

Feed ingredient markets, in general, were mixed on the week, with soybean meal declining in value and corn advancing. Alaron Trading's Tim Hannagan says corn "demand will have its soft periods but overall will remain strong through 2008.

"Strength came from outside markets all week. The U.S. dollar saw steep declines which allows foreign importers an opportunity to buy U.S. grains cheaper. The higher crude oil and other energies lend thought to higher corn based ethanol while metals surged on inflationary concerns," Hannagan said.

"(Soy)beans too near term follow the lead of crude oil and the dollar index until new supply side news surfaces on (the USDA's) November 9 crop report. Demand looks to remain robust and weather in Brazil is still longer term friendly as hot and dry conditions have persisted for two months. Once beans are 75% planted there, weather will be traded aggressively."

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