Feed Peas Firm in Europe

VANCOUVER - Apr 11/08 - SNS -- European feed pea markets were unchanged to firmer on inter-dealer markets in Belgium and Holland, even as grower bids in France managed a moderate increase.

International feed ingredient markets were mixed on the week, with corn futures values slipping against a general belief seeded area will rise well above the USDA seeding intentions forecasts. The risk of losing soybeans to corn helped support that commodity, along with protein meal prices.

Alaron Trading Corporation's Tim Hannagan stressed, "Currently we will consume more corn than we will produce this year based on the March 31st acres report showing 86 million acres going to seed this spring. This will not work, so something will change.

"One, growers will find higher prices and plant more corn. Remember -- many growers are undecided on planting and will make their decision before May 10th. Two, prices will move high enough long term to discourage over consumption and curtail exports, feed and ethanol usage. Either way, corn remains bullish into the growing season as it does not matter what you plant but what weather allows you to grow and that fear remains until pollination is over."

Old school thinking expects to see delays in corn planting result in more soybeans, Hannagan said. "New school index fund thinking says beans need to exceed corn's strength so corn does not steal our badly needed bean acres away. We are still in a battle for those undecided acres as some farmers sit on the fence and wait for the heavy rains to end allowing planting to begin and this may not be soon. When the planting window opens, corn and beans will see a pull back temporarily."

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