European Peas Transition to New Crop

VANCOUVER - Jul 12/09 - SNS -- European feed pea markets continued the transition from current to a new crop trading basis, with grower markets in the United Kingdom and France completing the switch; while deferred markets in Belgium dropped to a deeper discount to spot.

Alaron Trading Corporation's Tim Hannagan notes feed ingredient markets are benefitting from the moments of lower prices, which has been pulling buyers back in to cover more of their pending needs.

"Thursday's Weekly Export Sales Report showed 749,000 metric tons (MT) of corn sold for old crop shipment before September 1st and 415,000 MT sold for new crop year shipment, (lifting new crop sales to ) 1.165 million MT, with key U.S. customers in Asia accounting for 400,000 MT of the old crop sales.

"Recent corn price declines have had sales improving so this sets exports back a little but the total old and new keep overall business at least friendly to pricing at these levels. Friday's USDA Monthly Crop Report put ending stocks at the start of the New Corn Marketing Year- September 1st at 1.770 billion bushels up 170 million bushels from last month and new crops ending stocks come September 1, 2010 at 1.550 billion bushels up 460 million bushels from last month but 74 million bushels under 2008 and 220 under this year.

"The higher new crop ending stocks come as expected after the June 30th Planted Acreage Report showed a 2 m.a. increase in planting from the initial March Report estimate.From this point through August ending Stocks Numbers for 2010 will adjust up or down based on weather and its impact on yields the next six weeks.To date the weather is ideal for improved yields to a year ago. You can forget this report after today and come in Monday and continue to trade weather and its impact on the crop."

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