On poor demand and improving daily arrivals, castor seed yesterday decreased by -0.84% to 6024. The export of castor oil fell 14% year over year to 490 thousand tonnes between April 22 and January 23. The production of castor seeds in India is anticipated to rise by 15% to 19.46 lakh tonnes in 2022–2023. Markets have begun to receive the new crop. In comparison to the previous year’s projection of 2,087 kg per hectare, the expected yield is likely to increase slightly by 2% to 2,129 kg per hectare for the current year.
At every stage of the supply chain, from farmers to merchants to processors to exporters, importers, distributors, and consumers, the supply of castor seed or oil is now constrained and lower than typical. With higher consumption statistics and a rebuilding of inventories to normal levels, demand in 2023 is probably going to be better than it was in 2018. The prices will remain positive because of the rising domestic demand and global demand, as well as the use of castor meals as fertilizer. purchasing from castor seed crushing mills and stocking up on supplies kept to a minimum.
There is now enough castor oil available on the domestic spot markets as a result of the fall in Indian castor oil exports. The first advance projections from the government place the total castor production in India at 15.08 lakh tonnes in 2022–2023. Castor production in 2022–2023 will be 0.01 lakh tonnes, from 0.02 lakh ha (0.05 lakh acres), with a productivity of 778 kg/ha (314 kg/acre), according to the first advance projections from the Telangana State Government.
Castor seed spot prices in Disa mandi increased by 80 rupees to 6095.95 rupees per kg. Technically, the market is in long liquidation as evidenced by the market’s drop in open interest of -5.15% to close at 8010 while prices are down by 51 rupees. Currently, Castor is receiving support at 5986, and a move below that level could result in a test of 5946 levels. On the other hand, resistance is now likely to be seen at 6090, and a move above could result in prices testing 6154.