Mixed Performance for Feed Peas

VANCOUVER - Jun 6/08 - SNS -- European feed pea markets posted a mixed performance on the week, with dealer markets in Belgium easing, while those in Netherlands advanced, and grower markets in France showing a general decline.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan notes markets were mostly worried about wet weather conditions in much of the U,S., midwest during the past week. The week started with four to five million acres of corn left to be planted and fields too wet to enter in many areas.

"Ponds of water in low lands in the western cornbelt left re-planting of those acres a week or more away effectively suggesting that five to six million acres less acres of corn will go unplanted as the planting window has closed. . . . We must now consider that running out of corn before our 2009 harvest is reasonable. Needless to say, that will not happen as the function of the market is to ration a crop.

"With any further problems to this corn crop especially in July to mid-August, price rationing will have to occur to insure we do not feed, use and or export the corn crop to zero stocks. Twelve dollar corn or higher could easily be seen. Many market analysts will soon ponder the thought that Mother Nature may average things out taking this near record spring rain totals to a very dry summer totals."

Soybeans, by contrast, continue to be affected by the farmers strike in Argentina, which is becoming increasingly confrontational. Hannagan notes "the strike has no ending deadline. It will not be put on hold or end until another government agreement to meet is scheduled. As long as the strike is on farm products it will not move to ports leaving (others) to fill the hole."

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