The Indian rupee has opened 0.3% lower to hit a new record low level of 71.035 against the US dollar. The rupee pressurised by selling pressure across emerging market currencies amid the financial crisis in Turkey and Argentina. Higher crude oil price is also weighing on the Indian rupee.
Firmness has seen across edible oil prices like mustard oil, crude palm oil due to good demand from end consumer along with Indian Rupee falling to an all-time low. Soy oil prices increased in the global market, as USDA yesterday revised lower Argentina’s soybean crop production for 2017-18 to 36 million tons, which is 37% lower from a year ago. Argentina having nearly 50% share in global soy oil exports, and Argentina is expected to keep soy oil price firm globally. However, still huge soybean crop and ongoing harvesting season may limit any significant gains in prices. But, global high soy prices will increase demand for domestic soy oil and due to this soy oil prices to remain high in the local market for few days.
However, prospects of higher soybean production on good crop condition and limited demand for soy meal in the physical market will keep soybean price under pressure and may limit any major gains in veg oil prices in the local market.