Feed Peas Helped by Weak Greenback

VANCOUVER - Mar 14/08 - SNS -- Weakness in the U.S. dollar relative to the Euro and other major currencies allowed export markets to feed peas to run up on the week, though they were unchanged to lower in local currency terms in Europe and Canada.

Disappearance rates in Canada remain modest, with the Canadian Grain Commission reporting no peas moved from licensed elevators into domestic markets during week 32 of the 2008-09 marketing year. Season to date sales stand at 23,600 metric tons (MT), down from 58,800 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 noted that grain and oilseed markets are extremely volatile at current price levels and given the degree of participation by outside money. Noting that demand for corn is running well ahead of USDA forecasts for the marketing year, Hannagan said market participants should remain bullish.

"December corn made new contract highs this week for the fourth consecutive week. Like last week, we finished on a weak note. With the March 11th USDA crop report behind us, we have a grey area before the big March 31st planted acreage report. We are sure to have our fair share of down days as outside market influence has its way but equally as many up days will occur. Expect a run up into the March 31st report on fear it will no show enough acres to be planted," he said.