Commodity Outlook – Castor Seed

agribazaar February 9, 2021

Sowing period: July to October
Harvesting period: December to March
Crop season: Kharif

Key growing regions:

Gujarat – Deesa, Mehsana, Banaskanth, Patan, Palanpur
Rajasthan – Pali, Jodhpur, Hanumangarh
Andhra Pradesh – Kurnool, Rangareddy
Telangana – Mahbubnagar, Warangal

Production trend and Stock position:

Stock positions of Castor Seed were down by 28.20 percent held at National Commodity Clearing Limited (NCCL) approved warehouses at Bhabhar, Deesa, Kadi and Patan locations. The stocks held as on February 4, 2021 was 6,655 MT compared to 9,269 MT as on January 4, 2021
India is the world’s largest producer of Castor seed and Castor oil and according to the Solvent Extractors Association of India (SEA) exports of Castor Oil in 2020-21 (Apr-Dec) were 5.05 lakh metric tonnes (LMT) compared to 5.47 LMT in 2019-20 (Apr-Mar) and 5.71 LMT in 2018-19

Monsoon Update

For the country as a whole, cumulative rainfall during this year’s winter season till February 3, 2021 is above Long Period Average (LPA) by 8 percent. Details of the rainfall distribution over the four broad geographical regions of India are given below:

Note: Markets currently are in Backwardation where the Spot market prices are higher than the Futures market prices

Market commentary: Price outlook

Castor Seed prices are likely to trade steady to weak in immediate/short term though the prices have improved since May 2020 mainly after Castor oil exports increased to 71,900 MT