European Peas On New Crop Footing

VANCOUVER - Jul 25/08 - SNS -- European feed pea markets continued to ease during the past week, reflecting the improved availability of new crop pulses on the continent and the shift to new crop pricing basis in all countries.

Grower markets in France eased on the week against continued harvest selling and limited efforts by exporters to cover in food grade pea purchases. Markets in the United Kingdom continued to show good strength in spot markets, while declining in deferred delivery positions.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan said importers have been resisting prices in recent weeks, looking for the moment at a new bottom begins to form. They have been waiting on corn markets since they broke under U.S. $8 per bushel, something reflected in lower weekly average export sales activity.

"Demand remains neutral at best into months end," Hannagan said. "I see prices higher in early August before the August 12th crop report and that should encourage importers to re-enter. . . Looking at weather -- WXRISK.COM sees 85% of the Midwest grain belt getting 1 to 4 inches of rain (through Monday July 28). This essentially is the best rain total and coverage since planting ended.

"On August 12th, the USDA will release its final numbers on how many corn and soybean acres were planted. Their last estimate was June 30th and was supposed to be the final planted acres number of the year. However a problem arose. As final farmer surveys through June 10th were occurring the Midwest was seeing historic rain totals flooding farm lands in Iowa, Southern Wisconsin and then the breeching of the Mississippi river flooding farm lands along a 400 mile stretch.

"The government's June 30th report was more of a planting intension report leaving the August report as ours finally. Regardless of what the report says, the fear will be that the report could show from a 1 to 3 million acre reduction in corn (and soybean) acres planted from the June 30th report. Most believe the heavily flooded farm lands could not have dried out and is re-seeded before the planting window closed."

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