Friday, October 21, 2005

Bird flu economic effects: the future is now

If you are wondering about the many ways bird flu can affect the economy, consider this example.

Soybean futures are down:
Soybean futures ended lower on Thursday. Weakness came from concerns that Asian bird flu may slow demand for soybeans and soybean meal. The disease has spread to Europe and there are some reports that poultry demand has fallen by 30%. Soybean meal a major poultry feed. November ended 4 1/4 cents lower at $5.85 and January was 3 3/4 lower at $5.98. (Ag Professional)
This doesn't just affect futures traders, but the whole chain of production, from suppliers of farmers, farmers, storage, transportation through to the market.