International Feed Pea Markets Ease

VANCOUVER - May 2/08 - SNS -- International feed pea markets ended the week little changed in U.S. currency terms, thought European markets were somewhat easier in local currency terms.

Thinking is starting to make the transition into new crop as market participants work through how to maintain a reasonable level of livestock feed demand at current high prices for peas, while at the same time taking advantage of those human consumption export opportunities which come along.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan noted, "A little concern here on exports as there has been a clear slow down the last month but not enough to effect prices. It is all about planting delays for corn. Monday’s crop progress report put planting at 10% versus the five year average of 35%. Significant rain totals will fall across the Midwest late Thursday through Saturday, keeping farmers out of the fields.

"Fear for soybeans into next week are if planting delays for corn continue growers may switch acres from corn to beans. We saw a lot of spreading by buying corn, selling beans early week. If we come in Monday and we look to get those major rain systems mid and late week, look for a higher open followed with selling as traders bull spread long corn against beans. Be careful here."

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