Buenos Aires, Feb. 12 (OsterDowJones) - Argentine soybean prices settledlower on Thursday on concern that recent bird flu problems elsewhere willgrow worse, leading to the destruction of more birds, which could dampendemand for the soybean products used to feed them, traders said. Soybeansfor immediately delivery sold for 675 pesos ($1=ARS2.93) per metric ton onThursday in Rosario, Argentina's main soybean port. This compares with 700pesos per ton a week earlier. On Thursday, officials in the U.S. State ofNew Jersey said bird flu, or avian influenza, had hit four live poultrymarkets. In addition, health authorities in Pennsylvania said they hadquarantined a poultry flock while they conduct tests to see if it has beeninfected. This news comes just days after outbreaks in Delaware ledofficials there to kill 80,000 birds to prevent the infection fromspreading elsewhere. While the U.S. bird flu problems are not as seriousas are bird flu outbreaks that have wreaked havoc in Asia, traders areconcerned that the problem will become worse and crimp demand for soybeanproducts. "The most serious factor in the market now is the bird fluproblem," said Federico Mircoli, a trader with the Buenos Aires-basedbrokerage Granos del Parana. "This has really hit soybean prices. We'veeven heard rumors that China may decrease its demand for soybeans thisyear by 18%. We have a negative panorama as far as news goes and this isaffecting prices."Meanwhile, forecasts for rainy weather in Argentina also helped topush prices down by allaying concern that dry weather could diminish localsoybean output this year, traders said. The U.S. Department of Agricultureestimates Argentina will produce a record 36.5 million tons of soybeans in2003-04. Of this, Argentina will likely export 11 million tons. Officialsat the Agriculture Secretariat have said Argentina probably will harvestbetween 35 million and 37 million tons of soy in 2003-04. As of Friday,farmers had planted more than 99% of the 2003-04 soybean crop, accordingto the Agriculture Secretariat. Area is seen at 13.85 million hectares,compared with 12.6 million a year ago. Argentina is the world's No. 3 soyproducer, behind Brazil and the U.S. Most of Argentina's soybeanproduction is converted into meal and oil, making it the No. 1 exporter ofthese products.