European Feed Peas Advance

VANCOUVER - May 23/09 - SNS -- European feed pea markets gained further strength during the past week, helped by rising international feed ingredient values and a weak U.S. dollar.

There was a significant improvement in U.S. dollar equivalent values for feed pea grown in France and the United Kingdom; as well as on reseller markets in Belgium and Holland.

Alaron Trading Corporation's Tim Hannagan notes markets continue to be helped by strong Asian demand and biofuel mandates in the United States.

"Demand remains strong and will continue as Obama mandates for ethanol increases, feed lot expansions in Asian countries and China's reserve grain building program continues. We have to look for the U.S. to be the world's primary port of origin for quality and quantity of feed grains lowering ending stocks.

"After making new highs on the year Wednesday we saw profit taking ahead of our three day holiday. The big question when we come in Tuesday and get the 3:00p Crop Progress Report will it show the Eastern Belt jumped from 20% seeded to 60 or more or were the fields still too wet to plant leaving us at 45% or less done.

"As of today I am hearing farm reports of planters going non-stop. It is unscientific but I remember last year's wet May saw farmers planting in the rain. It was now or never. Same thing this year."

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