"At least four deals have been cancelled. Chinese buyers might cancel more," said one Singapore trader. "Each cargo is about 13,000 tonnes. Some suppliers are re-negotiating."
Another trader said Chinese buyers had bought meal at about $235 a tonne, including cost and freight. But Indian prices have fallen to $225 a tonne.
"Chinese buyers are saying they won't be able to take the cargoes at those high prices as bird flu fears are rising," the trader said.
It is unusual for China to import soyameal since the world's top soyabean importer has a huge crushing industry that process soyabeans into soyameal and soya oil at home.
But this year, China booked as much as 200,000 to 230,000 tonnes of Indian soyameal for near term shipment.
"I think more than 100,000 tonnes of Indian soyameal have already been shipped to China. A couple of cargoes are now loading," one Singapore trader added.
Traders in China said the growing scare of bird flu and softer soyameal prices at the Chicago Board of Trade were putting downward pressure on soyameal prices in domestic Chinese markets.
"Bird flu is a big uncertainty," said one Beijing-based trader. "Maybe there are some wash-outs. It would be better than bringing in the cargoes."
A wash-out in trade parlance refers to the selling back of a cargo to the supplier at a fee.
The World Health Organisation confirmed on Monday it would help probe a possible human case of bird flu in China, where 6 million birds were slaughtered in an area hit by the country's fourth outbreak of the virus in a month.
China has yet to report any human cases of bird flu.