Mixed To Easier Week For Feed Peas

VANCOUVER - Apr 18/08 - SNS -- Feed pea markets managed a mixed finish in Europe, with values in Belgium holding steady, while they declined in Holland and eased in France.

Growers in the United Kingdom continue to see unusually high prices being paid for field beans and peas, reflecting last season's short harvest and the need to cover a portion of the country's livestock feed needs with product imported from France and elsewhere.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan noted, "The week saw new contract highs as planting delays due to rain has traders fearful that some corn acres may switch to beans if not planted before May 10th and or 75% of the crop being planted in the last 25% of the preferred planting date push key yield time from the cooler, wetter mid to late June into the generally hot and dry days of July.

"Major support for December wheat lies at 6.00. A close under here and do not be long as it will not occur unless or until the planting window opens. The major concern corn has over planting progress is the late dates of maturity due to late planting. Yields need to be better this year and we can not loose an acre to beans from the March 31st planted acreage report. Reason being, if we plant the 86 million acres the report suggested with last year's yield our ending stocks after demand would fall from 1.2 billion bushels this year to 300 million bushels next year. Corn needs to get in on time and yields need to be better or prices may have to move high enough into and after harvest to discourage over consumption.

"Soybean concern has been that if it did not keep a higher price premium to the corn rally, corn could steal back some of the 11 million acres more the March 31st planted acres report said we would plant. There are many farmers who have yet decided on what they will plant. Of course the psychology could reverse itself after May 1st, if corn planting is still struggling to get going. This is due to rain as bean traders will then feel that some growers will plant less corn and more beans as corn planted after May 11th begin to loose growing days and yields. Beans are planted generally May 1st to June 10th."

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