April 9, 2013

China's soy market is seeing new lows due to an outbreak of bird flu in China which has resulted in the deaths of six people and the fear that it could spread through eastern China.

This very deadly form of bird flu has been found in South Korea in the past but this is the first time it's appeared in China.

In response to the infections, Vietnam announced a ban on poultry imports from China, while Hong Kong has strengthened its surveillance of flu cases.

The South China Morning Post article suggests a 30% decline in live chicken demand already. The market's fear is this will lead to Chinese authorities culling the flocks to avoid the disease spreading, which will result in reduced demand for soymeal.