Feed Peas Hold Steady

VANCOUVER - Feb 8/09 - SNS -- International feed pea markets were little changed during the past week, with European markets posting modest week over week changes in both local and U.S. currency terms.

Alaron Trading Corporation's Tim Hannagan said markets for major feed ingredients continue to experience an improvement in trading volume as end users take advantage of the lower prices which prevailed through January.

"As we could have seen the Asian buyers sit on their hands and wait for China to open shipping ports this week as their holiday last week is now over. However, they chose to buy U.S. corn big time. This week's sales will be the signal as to whether demand has turned positive or just a temporary blip. So far there has active feed corn buying of U.S. corn this week by Asian feeders for expanding hog and chicken populations.

"This past week was all weather. We came in Monday with weather gurus calling for heavy rains in Argentina then Brazil Thursday through Sunday. This had grains down hard Monday and Tuesday. Grains began to recover Wednesday as forecasts began to turn drier. Thursday rally came a forecasts cut in half rain expectations and added a hot and dry week for next week. Friday's rally came as forecast for our current system was even drier; their trading the grains on each weather report released almost by the hour.

"When we come in Monday if we indeed see a dry and hot week ahead for South America, we will open higher but expect a pull off the higher but expect a pull off the high or profit taking as traders cut risk ahead of Tuesday ahead of Tuesday's 7:30a central time monthly USDA crop report."