World Feed Pea Markets Advance

VANCOUVER - Feb 29/08 - SNS -- International feed pea markets were lifted higher during the week in sympathy with food pea markets and general strength in corn and nearby soybean meal futures contracts.

Values improved on the week across Europe, with stronger grower bids reported in France and the United Kingdom; while end user markets in Holland and Belgium were advanced in bothy local currency and U.S. dollar terms. Unfortunately, competition for raw material from food consumption markets remains a more important factor in setting feed pea values than interest in the product among livestock feeders.

Disappearance rates in Canada remain modest, with the Canadian Grain Commission reporting 1,100 metric tons (MT) of peas moved from licensed elevators into domestic markets during week 29 of the 2008-09 marketing year, lifting season to date sales to 23,000 MT, down from 56,900 at this point last season. On the other hand, modest quantities of Canadian feed peas continue to be positioned for movement into export markets, as reflected by the stocks of the grade in Vancouver and Thunder Bay.

Alaron Trading Corporation's Tim Hannagan notes that world markets for corn and soybeans looking firmer over the short term. "No one wants to sell any grain today and with a summer drought try and buy it back dollars per bushel higher. We look to open higher Monday with a pull back on profit taking Tuesday with strength into the end of the week as traders get positioned long ahead of the March 11 USDA Crop Report that could cut ending stocks.

"Like corn, beans too saw more than its share of profit taking off rallies as funds went to the bank before month's end. . . . With their mandate to bring more protein into their diet we look see China and Asian neighbors continue to keep a aggressive buying pace into harvest come fall."

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