Chinese soymeal plunges 6% for biggest drop in nearly 10 years

China’s soybean meal and soyoil futures plunged on Thursday, catching up with fall in the overseas markets.

The most active soybean meal futures on the Dalian Commodity Exchange fell 5.5% to 3,891 yuan ($580.59) a tonne DSMcv1 in their biggest decline since February 2013.

The most active soybean oil contract DBYcv1 on the exchange fell 4% to 10,238 yuan a tonne, its biggest fall since last October.

“After edible oils plunged, the whole market direction has changed, said Zou Honglin, analyst with the agriculture section of Mysteel, a China-based commodity consultancy.

“Domestically, soymeal inventories have been rising and pressure has been quite massive.”

Global edible oils markets turned bearish in early June, pulling back from high levels reached after a palm oil export ban by Indonesia, the world’s top exporter. BOcv1FCPOc3

Chicago soybean prices have tumbled 20% in the past two weeks. Sv1
Source: Reuters (Reporting by Hallie Gu and Dominique Patton Editing by Jason Neely and David Goodman)