Feed Peas Unchanged to Firmer

VANCOUVER - Feb 15/08 - SNS -- European feed pea markets recorded a mixed performance during the past week, with values in major import markets unhanged to firmer in U.S. currency terms; while grower markets in France and the United Kingdom remain strong.

North American feed pea markets remain quiet. Some quality tolerances on export food grade peas are relaxing as stocks tighten, limiting the percentages of natural splits and bleached peas which might otherwise be available to domestic feed users.

Alaron Trading Corporation's Tim Hannagan notes that corn markets are still seeing relatively strong demand, which is helping the market hold its value. "The question to be answered is, did we see the bottom of our February correction, before what we believe will be a handsome rally in March off the March 11 USDA crop report when ending stocks here could be adjusted lower as South American crop production finally gets adjusted and our long awaited March 31 planted acreage report. This is where most believe we can not see enough acres to be planted on all our crops to satisfy record demand.

"January saw fairly good price corrections off record high price rallies yet our February has brought only a small price correction. We are certainly poised for further profit taking if the large trading funds see fit to further take bonuses by taking profits but its also possible there simply too bullish for March report possibilities that recent corrections are enough. . . . As bullish as I am for March, if we have another price break to new lows on the month buy the new crop December corn as close to our 5.02 support as you can."

Subscribers can read the full text of the article by Clicking here