Bird Flu Rumors Pressure Dalian Soybean Futures

Markets in Shanghai were cautious on Thursday as rumors of a bird flu outbreak in some Chinese provinces spread, potentially undermining demand for soybean and its byproducts. Soybean futures on the Dalian Commodity Exchange fell due to long liquidation, while investors watched developments on the rumor. Trade volume in the soybean futures market decreased, and soymeal futures also settled lower.

Key Takeaways:

• Dalian Commodity Exchange soybean futures settled flat to lower due to long liquidation amid bird flu rumors.
• The benchmark May 2005 soybean contract inched down CNY2 a metric ton to CNY2,584/ton.
• No. 2 soybean contracts, which can be delivered with soybeans harvested from genetically modified crops, settled flat to lower in active trade on long liquidation.
• The benchmark May 2005 No. 2 contract fell CNY5/ton to CNY2,557/ton.
• Trade volume for No. 2 soybeans more than doubled from Wednesday to 4,224 lots.
• Dalian's soymeal futures settled flat to lower as well on the rumor about bird flu.
• The benchmark May 2005 soymeal contract lost CNY3/ton to CNY2,141/ton.
• Corn futures traded on the exchange settled mixed in two-way trade, with the benchmark May 2005 contract remaining unchanged at CNY1,156/ton.

Statistics:

• Dalian soybean futures trade volume fell to 159,426 lots from 230,654 lots on Wednesday.
• The benchmark May 2005 soybean contract inched down CNY2 a metric ton to CNY2,584/ton.
• The benchmark May 2005 No. 2 contract fell CNY5/ton to CNY2,557/ton, with a trade volume of 4,224 lots.
• Dalian's soymeal futures trade volume remained unchanged, with the benchmark May 2005 contract losing CNY3/ton to CNY2,141/ton.
• Corn futures traded on the exchange had a two-way trade, with the benchmark May 2005 contract remaining unchanged at CNY1,156/ton.

Sources:

• Dow Jones Newswires, 86-21-6218-3268, djnews.shanghai@dowjones.com -edited by George Bernard
• COMTEX, http://www.comtexnews.com