May 25, 2005

Soymeal sales stagnated in China

Large shipments of South American soybeans arriving in China have experienced virtually no movement, and are being stockpiled because the recent outbreak of foot-and-mouth disease has held back a recovery in demand for animal feed in the country.

Traders said that hardly any crushers had bought soybeans in the past week, though cost and freight premiums for Argentine soybeans were now as low as 130 cents per bushel for June and July shipment, down from about 140 cents two weeks ago.

Though the discovery of bird flu in migratory birds is a possible concern, traders are more worried the outbreaks of foot-and-mouth as it reportedly has spread through the country.