Feed Peas Rise in Europe

VANCOUVER - Mar 21/08 - SNS -- European feed pea markets posted a strong finish on the week in local currency terms, but were mixed in U.S. dollar terms because of the impact of efforts by speculators to unwind short positions in the U.S. dollar by selling holdings of other currencies.

Even so, the Euro managed to finish up from week earlier levels, while the British Pound and Canadian dollar closed lower. The Canadian dollar also suffered from deepening worries about the depth of the U.S. recession and its impact on economic growth in that country and the possibility the manufacturing base in eastern Canada may tilt into recession even as the resource-rich west manages to continued growing, though at a slower pace.

Speculators were also releasing cash from commodities, resulting in continued selling of long positions in corn, soybeans and wheat. This worsened the competitive position of feed peas in livestock feed rations, whether in Canada or Europe.

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