Soymeal cash basis and futures in China fell sharply this week to the lowest level in three weeks as the announcement of state soybean auctions triggered a large sell-off.
Based on Sitonia Consulting data, cash basis for spot soymeal delivery in northern China sank almost 28% since the start of this week to 580 yuan/ton ($91/ton). Those in eastern and southern China also slumped 30-40% during the same period to 460 yuan/ton ($72/ton) and 500 yuan/ton ($79/ton) respectively.
“The [bullish] market...