Feed Peas Finish on Strong Note

VANCOUVER - May 16/09 - SNS -- European feed pea markets continued to strengthen in sympathy with stronger international feed ingredient markets during the past week.

Alaron Trading Corporation's Tim Hannagan notes markets ae helped by solid demand from Asia for livestock feed ingredents and normal weather uncertainty during the planting and growing season.

"(The latest USDA export) numbers show that Asian countries are coming back in buying after last week's report reflected a slow week when Asian importers took a step back to see what the Swine Flu outbreak might bring, " he noted.

"We still have 52% of the corn crop to plant with 85% yet to plant in the Eastern Corn Belt States of Illinois, Indiana and Ohio. With the heavy rain from this past Wednesday through Saturday, the Eastern Belt will not plant until Wednesday.

"Several weather models suggest we will be dry Monday through Saturday. If true, planting progress on Wednesday to Saturday will soar, allowing traders to consider removing some of the weather premium. A dry forecast could pull July corn back to 4.05 areas.

"If we come in Monday and rain of measurable amounts are forecasted it drastically tightens the planting window time as growers want all seed in by month's end. A wet forecast would push July Futures to the 4.38 to not higher than 4.50 prices before the month's end profit taking enters."

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