Feed Peas Strengthen in Europe

VANCOUVER - Jul 11/08 - SNS -- European feed pea markets showed good strength during the past week, with trading levels in Belgium and the Netherlands rising sharply.

Grower markets in France were generally firmer, even though the unweighted average bid declined because of an increase in delivery points posting prices. Markets in the United Kingdom showed good strength on the week, with grower markets up sharply for field peas and beans.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan said, "Friday's USDA monthly crop report put (corn) ending stocks for 2008 at 1.598 billion bushels, up from 1.433 the month prior and over the average pre-report trade guess of 1.514. They put next year's 2009 ending stock at 833 million bushels versus 673 the month prior and the average guess of 820 million bushels -- but half the amount of this year.

"This puts us right back where we were before the report and that is that we need perfect growing weather to not drive ending stocks even more dangerously lower. It is all weather and it is impact on the growing season deep into August. The government did cut expected yields again to 148.4 bushels per acre versus 148.9 last month. The big report will be the August 12th crop report when final planted acres numbers come in. Traders will be buying into that report, that week."

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