Easier Tone in Feed Pea Market

VANCOUVER - Sep 5/08 - SNS -- International feed pea markets finished the week on a generally easier note in U.S. dollar terms, with little trading reported for Canadian or U.S. origin product outside limited volumes of domestic business.

Even so, the Canadian Grain Commission (CGC) Reported a relatively good volume of field peas sold directly from primary elevators to domestic buyers. A total of 3.300 metric tons (MT) traded during the week ending August 30, lifting total sales to 4,000 MT for the month, compared to 4,500 MT last year.

Inter-dealer markets for feed peas were mostly unchanged in the Netherlands and Belgium during the week, as were grower bids in France. However, exporters reduced their bids for human consumption peas delivered to Rouen. Markets in the United Kingdom eased in the face of harvest selling pressure.

Looking at major feed ingredient markets, Alaron Trading Corporation's Tim Hannagan said corn and soybean markets remain unsettled as harvest activity gets underway in parts of the United States.

"December corn charts suggest next week's early low could be $5.05 (per bushel), but I am shooting for 5.15 at which point you should cover your shorts and if not short going into the week end; then buy that low and expect a pull back to 5.40 ahead of Friday's crop report release. Traders expect next Friday crop report to come in with a lower yield and production after weekly USDA crop condition reports in August ended lower on the month."

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