China’s soymeal prices hit highs

China's soymeal futures soared to record highs this week on concerns about the scale of South America's drought-hit soybean crop and tightening meal supplies in domestic markets.

Elevated prices of soymeal, the top protein ingredient in animal feed, could lift production costs for Chinese hog farmers who are already struggling with huge losses, and may push some to exit the market, traders and analysts said.

The most actively traded soymeal futures on the Dalian Commodity Exchange rallied to 3,792 yuan ($596.22) per tonne this week, the highest price on record, and up 13 per cent from before the week-long Chinese New Year holiday.