February 4, 2004

Thailand May Forgo 60,000 Tons US Soybeans Following Bird Flu Outbreak

Thailand may have cancelled a contract to import about 60,000 tonnes of soybeans from the United States following the bird flu outbreak that has affected commercial feed demand, traders said on Tuesday.

Traders declined to give the price at which the contract was finalised but added the cargo was for February/March shipment.

Thailand is one of the 10 Asian nations struggling to control the spread of the virus, which has so far claimed at least 12 lives and led to the slaughter of millions of chickens.

"The soybean deal has probably been called off, as Thai buyers are not sure if they will need that cargo," said one trader.

The poultry industry in Thailand contributes about one percent to the country's GDP. Annual exports of chickens are worth $1.5 billion.

Regional traders said Thai soymeal buyers had also asked its suppliers to defer the shipment of two cargoes of Indian soymeal by a few weeks.

"Buyers are not talking to sellers," said one trader. "There is no point to explore fresh business until we get a clear picture on how long this problem will continue."