European Feed Peas Ease on Harvest Selling

VANCOUVER - Jul 18/08 - SNS -- European feed pea markets were mostly weaker by week's end, reflecting improved availability of new crop merchandise in France and elsewhere..

Grower markets in France were down sharply in the face of harvest selling pressure and limited efforts by exporters to cover in food grade pea purchases. Markets in the United Kingdom continued to show good strength on the week, with little change in grower markets for field peas and beans.

The mood in feed peas was not helped by general; weakness in corn and soybean markets during the past week. Significant declines were registered for soybean meal, with the December contract losing U.S. $57.60 a ton once markets realized this year's crops would be sown in the United States and they were not going to be lost by last Wednesday. Feed pea markets have mostly taken these pyrotechnics in stride, with the willingness of growers to sell playing a key role in determining price direction.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan said, "It is all about weather. Last Friday, I gave support this week as $6.60 (per bushel) the target price (for corn) if rain entered. We came in Monday with weather gurus adding late week rain which came in and 6.60 was hit by Wednesday.

"On my Tuesday report, I said a close under 6.60 next stop is 6.10, weather permitting. Thursday gave us a close under 6.60 and if weather is good next week, 6.10 are certain. WXRISK.COM sees generally warm conditions with some rain Tuesday through Thursday. Here's the risk: If we come in Monday and weather models flip over and move temperatures from the mid 80's to mid 90's and take the rain out, corn will open 20 to 25 higher. If forecasts remain unchanged we open 5 to 8 lower and slowly grind to 6.10 early in the week."

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