EU Feed Peas Unchanged To Firmer

VANCOUVER - Aug 1/08 - SNS -- European feed pea markets were little changed during the past week, with markets completing the transition into new crop pricing basis and facing the question of how to allocate a relatively small crop among all potential users.

Grower markets in France and the United Kingdom were unchanged on the week, while inter-dealer markets in Belgium and the Netherlands were unchanged to firmer.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan said demand for new crop corn and soybeans is building at current prices, leaving markets worried prices must be high enough to attract enough land into the crops next year to prevent a worsening supply and demand balance from developing.

"(T)his explains why the December 2009 contract has gained on the December 2008 contract this week. We should expect the December 2009 contract to continue to gain on the spread versus 2008 December contract as ending stocks for 2009 are expected to be half of 2008. Another battle against beans in the January to March time frame to find a price high enough to insure we plant more corn acres and at least not lose any."

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