Underlying Firmness in Feed Peas

VANCOUVER - May 1/09 - SNS -- European feed pea markets ended the week's trading on a mixed note with grower markets advancing in France and the United Kingdom, while reseller markers were unchanged in Belgium and Holland.

Alaron Trading Corporation's Tim Hannagan notes feed ingredient markets are finding good support in strong export movement into Asia.

"Thursday's Weekly Export Sales Report came out ahead of the opening showing 1.225 million MT Of corn was sold last week up 1% from the week prior and 11% over our strong four week average. We were also well over a year ago of 775,000 MT. We were also well over a year ago of 775,000 MT. We were over 1 million MT for the 6th week of the last eight showing a continuation of strong demand.

"Here is how we read out for the beginning of May: Between Monday, May 4th and May 11th, which is the seven days prior to May 12th- the USDA Monthly Crop Report. Those seven days will yield a price higher than today's close. The reason is that traders will not want to be short into the report and many will want to be long on fear the May 12th report will cut corn ending stocks. The May 12th report is the accumulation of April Supply Demand Statistics.

"The April demand for corn war for corn was far better than the month prior and Argentina lowered their production once as harvest progressed. This leaves the USDA with a high probability of raising their export expectations here due to lower production in South America. The February 10th report put ending stocks at 1.790 billion bushels March 11th report at 1.740 billion bushels The trade expects at least a cut of another 40 to 60 million bushels.

"The general overall short covering and buying should offset the negative news from Swine Flu concerns. Any drop in crude oil or financial market drops. The question is what kind of strength can we see?"

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