001145 Commodities RoundupNovember 24, 2000Chicago - Soybean meal futures rose to a six-month high at the Chicago Board of Trade after Germany said it is seeking to ban the use of meat and bone meal in feed for hogs and poultry. The move marks a potential widening of the restrictions on use of the meal in Europe following a growing number of cases of Bovine Spongiform Encephalopathy, which scientists have linked to the feeding of animal parts to other animals. Vegetable-based feeds such as soy meal are expected to be in greater demand as a result. The December contract leapt $7.50 to $186.90 a short ton. “The Germans and the French are pushing the E.U. to take action,” said Victor Lespinasse, grain trader with A.G. Edwards in Chicago. “The market was up again on speculation those efforts will pay off and we'll see a ban throughout Europe.” Germany's move follows the agriculture ministry's confirmation Friday of the first case of a BSE infection in Germany. “If a universal ban is adopted the E.U. will need an additional 3.5 million- 4.5 million metric tons of a meal replacement annually,” said Brian Scott, a grain trader with R.J. O'Brien in Chicago. In the 1998-99 marketing year, the E.U. consumed 24.67 million metric tons of soybean meal, according to the U.S. Department of Agriculture. In other markets: Corn futures on the CBOT were carried higher by the strength of soy futures following news of Germany's ban on meat and bone meal, traders said. The December contract gained 1 cent to $2.1125 a bushel. “Corn followed soy's lead Friday,” said one local corn broker. “The fundamentals in corn remain bearish, but the strength in soy out powered those elements.” One of those bearish fundamentals traders were talking about was disappointing export sales in the U.S. Department of Agriculture's weekly report. They also pointed to ongoing concerns about the effect on exports of the controversy over Starlink, the genetically altered corn that's shown up in food. The New York Mercantile Exchange was closed for the Thanksgiving holiday weekend. In London, futures of North Sea Brent crude fell 16 cents to $33.12 on the International Petroleum Exchange.
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