Weak Greenback Lifts Feed Peas

VANCOUVER - Nov 2/07 - SNS -- North American and European feed pea markets finished the week's trading unchanged to slightly firmer in local currency terms, but stronger in U.S. dollar terms.

Limited supplies of feed peas from growers in either region continues to influence prices which need to be paid to attract grower selling. However, prices in France have declined since the best part of its opening season export commitments to the Indian subcontinent were covered.

Markets in the United Kingdom were nominally unchanged in local currency terms, but up sharply in U.S. dollars because of continued heavy speculative demand for nearly any currency other than the U.S. dollar.

It should be noted that markets for most major currencies are now perceived as being over-bought; whereas the U.S. dollar index is viewed as being over-sold. This points to a correction at some point. However, it is an open question whether the U.S. dollar will resume its downward trend after the next round of profit taking on currency markets.

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