China Soyoil Futures Down Over 2 Pct, Biggest Pct Drop In 4 Months


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)