Firming Trend on World Field Pea Market

VANCOUVER - Feb 1/08 - SNS -- Field and feed pea markets in Europe finished weekly trade on a generally stronger note, with inter-dealer and grower markets on the Continent advancing, while markets in the United Kingdom were easier in U.S. dollar terms and unchanged in local currency terms.

Canadian field peas remain uncompetitive as a livestock feed ingredient. in lackluster disappearance of field peas from primary elevators into domestic markets. The Canadian Grain Commission reports only 500 metric tons (MT) moved from primary elevators to local buyers during the week ending January 26. This lifted domestic shipments to 20,100 MT during the first half of the marketing year, down 33,700 from 53,800 MT last year.

Major livestock feed ingredients such as corn and soybean meal were firmer on the week, but the gap between field peas, which are being mainly sold on human consumption markets, and other ingredients used in animal feed remain too wide to generate substantial demand.

Alaron Trading Corporation's Tim Hannagan notes that markets are worried about the impact horrific snowstorms will have on demand from China. "Destruction of winter crops is yet to be determined but there is potential China may have to enter as a near term importer. It can only be bullish from an U.S. demand view point. . . . Feed grains will continue higher until we fully price our grain into the wildly inflationary world market."

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