Monday, December 1, 2008

India soybean down as bird flu cuts soymeal demand

Mon Dec 1, 2008 11:15am IST

MUMBAI, Dec 1 (Reuters) - India soybean futures fell on Monday morning after an outbreak of bird flu in the north-eastern state of Assam pulled down demand for soymeal, analysts said.

Soymeal is the main by-product derived from crushing the oilseed and is mainly used as poultry feed.

At 11:04 a.m., the January contract NSBF9 on the National Commodity and Derivatives Exchange was down 0.64 percent at 1,703.5 rupees per 100 kg.

Buyers in other parts of the country may also hold back purchases as the news may have affected sentiment across centres, they added.

Prices may weaken further on higher expected supplies in the spot market. Farmers who have been holding on to their produce, are now more likely to bring it to market to benefit from a recent spike in spot prices. (Reporting by Abhishek Shanker; editing by Rohini Ananthan)

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