SHANGHAI (Dow Jones)--Soybean prices in China's major producing regions
slightly fell in the week to Friday on easing domestic soymeal and soyoil cash
prices, as well as Chicago Board of Trade soybean futures.

  In Heilongjiang province, China's largest soybean-growing region, prices of
average quality soybeans fell by CNY10-CNY20 to CNY2,400-CNY2,500 a metric ton.

  The province's production reached 6.3 million tons last year, about 40% of
the country's total output in 2006.

  Prices in Jilin province, another major producing region in the northeast,
were mostly quoted around CNY2,600/ton, little changed from the previous week.

  "The slight decline of soybean prices in some places was because of lower
soymeal and soyoil prices," said Zhang Liwei, an analyst at the China National
Grain & Oils Information Center.

  "Prices of soyoil imports at the ports fell on lower CBOT futures prices in
the week, which weighed on local prices," Zhang said.

  Meanwhile, local feed demand remained weak, he added.

  Farmers in China have been reluctant to raise more poultry, although it is
just one month ahead of the Spring Festival, when demand usually peaks.

  Traders said farmers are wary of the risk of animal disease in the wake of
the bird flu outbreak at the end of 2005, which greatly damped poultry prices.

  However, "there's not much downside for soybean prices, as farmers only have
about 40% of their total harvest," said a trader in Beijing.

  "They're not keen to sell them at the moment, so we won't see the supply side
being greatly pressured, though demand isn't that good," he added.


  -Helen Sun contributed to this article; Dow Jones Newswires; (86-21)
6120-1200; helen.sun@dowjones.com

  -Edited by Ryan Woo