Feed Peas Mixed in Lackluster Trade

VANCOUVER - Mar 7/08 - SNS -- European feed pea markets finished the week on a generally stronger note, with prices posting solid advances in U.S. currency terms despite a mixed performance on local markets.

Values eased in Holland and Belgium during the week, but managed to continued their advance in the United Kingdom, while posting a slightly easier performance in France.

Disappearance rates in Canada remain modest, with the Canadian Grain Commission reporting 400 metric tons (MT) of peas moved from licensed elevators into domestic markets during week 31 of the 2008-09 marketing year, lifting season to date sales to 23,600 MT, down from 57,400 at this point last season. On the other hand, exporters are accumulating modest quantities of Canadian feed peas 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 managed a terrible performance during the past week on account of weaker than expected export trade data and profit taking by speculators.

"Though the sales were soft on appearance you have to consider this: weekly export sales are generally lower ahead of monthly USDA crop reports as foreign importers await fresh domestic and world supply demand indicators for marketing purposes; and Asian sales were 440,000 MT versus the week prior of 256. With 70% of our exportable feed grains going to Asia, it is those sales that determine the strength of demand."

Hannagan noted markets were most disappointed by the soybean export numbers, but stressed, "China will be back buying U.S. heavy again when South America's done delivery. China's Ag officials have stated this week they plan to build government reserves of beans and bean oil, additionally to meeting near term needs. This will keep not just our demand but world high protein crops in high demand through our fall harvest.

"Remember, March is the last month of old crop up front futures trying to reach a high enough price to buy acres for the March 31st planted acreage report. The new crop November futures being the lead dog as all the risk will be in new crop fates during the planting and growing season."