China soybean oil futures fell over 2 percent on Thursday, reaching their lowest level in three months, following a drop in global prices and amid ongoing pressure from large stocks.
* The most active soybean oil contract on the Dalian Commodity Exchange fell as much as 2.4 percent to 6,026 yuan ($906.30)per tonne, its lowest level since June 29
* The drop was its biggest percentage decline since May 31
* The drop tracked plunging U.S. soyoil futures, said analysts, after the U.S. Environmental Protection Agency said earlier this week it was seeking comment on a proposal to reduce biodiesel blending requirements in domestic fuel.
* Dalian futures are also under pressure from China’s high inventory of soybean oil that has lasted for several months
* Demand has also weakened ahead of the upcoming national holiday
* Increasing palm oil supplies overseas continue to weigh on prices too($1 = 6.6490 Chinese yuan)