Feed Peas Rise in Europe

VANCOUVER - May 8/09 - SNS -- European feed pea markets ended the week's trading on a strong note with grower markets in France and the United Kingdom rising along with reseller markets in Belgium and Holland.

Feed pea users in Europe are relying almost exclusively on locally grown product to meet their needs. Canada has shipped insignificant quantities of feed peas to Europe this season and has only 28,500 metric tons (MT) of feed grade peas in position in export terminals.

Interestingly, the latest stocks in all positions date from Statistics Canada implies that a domestic feed pea usage is up in Canada this season. The only concrete evidence of a modest increase in feed usage is a 6,700 MT increase in shipments into domestic markets from inland terminals and country elevators into the domestic market. But, that is still only 52,100 MT so far in 2008-09.

Alaron Trading Corporation's Tim Hannagan notes feed ingredient markets finished the week's trading mixed, with corn up and soybean meal down on the week. Corn exports to Asia have slowed as importers in the region "take a step back until they (have) gauged the impact of the Swine Flu on the market.

"It appears exports this week to show up on next Thursday's report will be a little better as Swine Flu scares have subsided. We have to expect a little of a slow down. But what we do not want to hear is a country temporarily closing their ports until they figure out how to inspect incoming ships for the virus."

Looking toward's Tuesday's USDA crop report and updated supply and demand forecasts, Hannagan said, "Clearly traders would rather be long than short into the report as pre-report trade guesses all have a lower ending stocks number over last month's report due to a strong April demand pace and lower South American production to compete against us."

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