November 18, 2005
China soybean prices extend decline on bird flu worries
Soybean prices in China's major soybean producing areas slightly fell in the week to Friday and trading remained slow, extending a pattern seen over the past several weeks.
"A major concern is bird flu," said a trader with a large soybean crusher in Dalian.
In Harbin, the capital city of China's largest soybean producing Heilongjiang province, prices were quoted at RMB2,430-2,440/tonne, lower than RMB 2,440-2,460/tonne a week earlier.
Prices in Jiamusi, a city in eastern Heilongjiang, were about RMB 2,400-2,430/tonne, down from RMB2,420-2,460/tonne.
Soybean prices were quoted about RMB2,380/tonne in Mudanjiang, a city in southern Heilongjiang, lower than RMB2,400/tonne a week earlier.
In Jilin province, prices ranged from RMB2,460/tonne to RMB2,600/tonne, slightly lower than RMB2,460-2,620/tonne a week earlier.
Buying was generally cautious as large crushers have yet to enter the market to buy soybeans, traders said.
"We haven't begun buying local soybeans," said the Dalian trader, citing bird flu worries.
A series of bird flu outbreaks across the country since last month have hit the poultry and feed sectors, with prices as well as output falling in many regions.
In addition to corn, soymeal, a product crushed from soybean, was mostly used to make feed.
As of Thursday, China has reported 13 outbreaks of bird flu nationwide since Oct 19. Two people have been confirmed dead due to the disease.
Local traders said the soybean market has been locked into sluggish trading since harvesting, as buying interest was scarce while farmers were loath to sell due to weaker-than-expected prices.
"Without effective control over the disease and a surge in demand (for soybeans), the current market dilemma can't be solved," said a Shandong-based trader.
Resale prices for imported soybeans were quoted about RMB2,650-2,700/tonne in major coastal cities Friday, largely steady from a week earlier, traders said.
