Mixed Finish for Feed Peas

VANCOUVER - Nov 30/07 - SNS -- European feed pea markets posted a mixed finish, with values easing in the Netherlands and Belgium even as grower bids in France and the United Kingdom finished the week unchanged to firmer.

Major feed ingredient markets also managed a mixed finish on the week, with soybean meal declining slightly on a week over basis; while corn advanced. Peas generally compete for attention in feed mixes on a protein basis with meal and on an energy basis with corn.

Alaron Trading's Tim Hannagan said he is bullish over long term price prospects for corn, but he cautions that the technicals for the market could change and that could force values off trend.

"To turn negative on the charts we need a close under 3.98 basis March futures.  This would set up a test of 3.90, then 3.84 and next 3.72.  A close over 4.07 sets us up for 4.24.  A December correction would be welcome to get positioned for a late spring high rally," Hannagan says.

"Like corn, beans too saw its week's high Monday with the rest of the week showing topping action. Last year this week saw beans hit their winter high then break 50 cents to a December 18th low before rebounding. . . . A close under 11.00 basis March futures is needed to turn technically bearish.  If and when occurs next stop is 10.70 then 10.50."

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