European Feed Peas Advance

VANCOUVER - Dec 7/07 - SNS -- International feed pea markets ended the week on a strong note, with European feed peas leading markets higher.

Markets ended the week on a stronger note in Belgium and the Netherlands, helped by a surge in grower bid levels in France. They were also helped by an unusually strong finish for soybeans, meal and corn.

Futures traders are expressing some concern that product is disappearing at a faster rate than initially thought. They expect this to be reflected in downward revisions in ending stocks when the USDA updates its supply-demand estimates when it releases its latest crop production estimates Tuesday.

Alaron Trading's Tim Hannagan said," Beans like corn, divorced itself from outside markets like crude oil late in the week as they get positioned for Tuesday's big crop report. Last month's carry over or ending stocks for 2008 were put at 210 million bushels down 5 million bushels from the month prior lending thought of further cuts as demand was at its highest of the year in November."

New crop soybean markets are also being supported by the perceived need to keep prices at levels which ensure enough land is sown to the crop to prevent the United States from running out of beans in 2008-09. However, corn has been battling back to try to ensure it does not give up too much land to beans.

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