European Feed Peas Unchanged to Easy

VANCOUVER - Jun 14/08 - SNS -- European feed pea markets were unchanged to weaker, with little to no trading reported for imported feed peas from Canada and other origins.

Grower bid levels in both France and the United Kingdom were unchanged on the week; while dealer markets in the Netherlands were unchanged and Belgium declined.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan notes they are locked in a weather market as stormy weather is flooding fields in parts of the U.S. midwest preventing growers from completing seeding of this year's corn and soybean crops.

"We ended the week with historic high (corn) prices as rains in the western corn belt and upper plains left many farm fields flooded with talked going from corn acres being damaged to now being destroyed."

Hannagan said markets were left to puzzle out the possible impact because the past week's updated USDA supply sand demand forecasts did not address "how many of their estimated 86 million acres will go unplanted and how many acres were planted that are flooded out and unable to re-plant. That is where the June 30 final planted acreage report comes in. Traders will fear the report could show from 3 to 6 million acres less will come to production."

Markets are already speculating as to the impact the flooding will have on the final area for both corn and soybeans. "Will farmers take unplanted corn fields and switch to beans offsetting flooded bean field losses or will we come in lower off the same issues on corn of too much rain, too flooded and too late. Either way, the fear ahead of the report will be (soybean) acres will come in lower leaving beans to firm up the week prior June 30th."

Subscribers can read the full text of the article by Clicking here