Feed Peas Firm Before Seeding Intentions Reports

VANCOUVER - Mar 28/08 - SNS -- European feed pea markets finished weekly trading on a firmer noter against rising grower bids in France and stronger inter-dealer markets in Belgium and Holland, while North American markets were nominally unchanged.

International feed ingredient markets were also generally higher on the week, though markets started and finished on down notes. The week opened amid general economic concern and efforts to even up positions for the long Easter weekend. Positions were retaken through the middle of the week and then sold off in front of Monday's seeded area and stocks in all positions reports from the USDA.

The report should give an indication of prospective field pea area in the United States this year, confirming whether or not rising wheat and soybean plantings are coming at the expense of field peas, lentils and dry edible beans. Canada's seeding intentions report, which is expected to show an increase in pea area, will not be available until April 21.

Alaron Trading Corporation's Tim Hannagan stressed, "It is all now about Monday's USDA planted acreage report due for release at 7:30 AM central time. A poll taken of the 20 top trading first put planted acres for (corn) this spring at 87.3 million acres versus 93.6 last year. The range of guesses are from 85.7 to 89.7. The rule of thumb is anything under the average estimate is bullish for the open and over is bearish.

"It is only for Monday's directions unless the number is above the high estimate or under the low estimate at which point you will see follow through into Tuesday. Though this report is critical to market trading psychology once the initial reaction is over we go back to weather and its impact on our planting progress then growing progress.

"The average trade guess (for soybeans) calls for 71.5 million acres to be planted versus 63.6 last year. The range of estimates go from 70 to 74.2 million acres. Anything under 70 would take beans up limit Monday and higher on Tuesday's open as ending stock inventories are too low and anything over -- lends to a lower open. Either way, when the report volatility is over early week, it all becomes about weather and the impending growing season."