China's commodities markets are rattled by the country's current stock market bust, with everything including eggs and soymeal plummeting to a three-month low in shares this week, Bloomberg reported.
As official measures failed to prevent the recent crash, a selling frenzy had erupted over fears that the Chinese economy might mired further in a dire situation, said a trader with private asset-management company Guoyun Investment Co. in Beijing.
"Agricultural products, in my view, (suffer) collateral damages in this selloff," according to Liang Ruian, a fund manager with Shanghai-based Jianfeng Asset Management Co.
Ivan Szpakowski, a commodities strategist at Citigroup Inc., explained that the selloff was triggered by withdrawing stocks, but is not "reflective of a deterioration in economic growth or commodity demand". Rather, the market had witnessed a fall in sentiment and "spillover from the equities market," Szpakowski added.
China, the world biggest consumer of grains, has seen a slow economic growth, thus leading to some cooling of commodity prices in 2015.
Moreover, the Bloomberg Commodities Index, which monitors 22 raw materials, showed a drop of more than 6% this year.