December 2, 2005
China soybean prices decline; bird flu worries persist
Soybean prices in China's major soybean producing areas fell slightly in the week to Friday, extending a fall since early last month amid lingering concern over bird flu.
In Harbin, the capital city of China's largest soybean producing Heilongjiang province, prices were quoted at RMB2,350-2,380/tonne, lower than RMB2,380-2,400/tonne a week earlier.
Prices in Jiamusi, a city in eastern Heilongjiang, were about RMB2,350-2,360/tonne, down from RMB2,400/tonne the previous week.
Soybean prices were quoted about RMB2,300-2,320/tonne in Mudanjiang, a city in southern Heilongjiang, lower than RMB2,360/tonne a week earlier.
In Jilin province, prices were in the range of RMB2,420-2,520/tonne, lower than RMB2,460-2,580/tonne the previous week.
Trading remained slow as buyers moved to the sidelines due to worries over persistent outbreaks of bird flu.
Some large crushers, who had begun buying soybeans just recently, also halted their purchasing plans due to poor soy product prices, traders said.
"Look at the disease (bird flu); the outlook in the soy market is dismal," said one trader.
Soybeans are crushed into soymeal and soyoil, which are for animal and human consumption, respectively.
Soymeal accounts for 80 percent of soybean output.
Spot soymeal prices across the country have fallen to RMB2,150-2,280/tonne recently from RMB2,300-2,500/tonne a month earlier on falling feed demand.
As of Friday, China has reported 25 outbreaks of bird flu across the country since October, and the government has killed millions of fowl.
The government has also confirmed three human cases of bird flu, including two fatalities.
Farmers were also reluctant to sell their soybean crop due to falling prices, traders said.
"Soybean prices in Heilongjiang now are at least RMB150/tonne lower than a year ago," one trader said. "Farmers in many regions can't make money and even incur a loss (if they sell at the current prices)."
