US Castor Oil Market Surges on Tighter Indian Supply

The US castor oil market has seen an unexpected surge in August due to tighter Indian availability and stronger downstream consumption.

India is responsible for over *** of global castor production, making its weather and planting conditions crucial for trade. Gujarat accounts for more than *** of Indian output, further emphasizing the importance of these factors.

A recent report from the Solvent Extractors' Association of India revealed that total kharif oilseed acreage remained stable at ***.** lakh hectares, but castor seed acreage declined sharply to *.** lakh hectares, a reduction of about ***.

The weak monsoon conditions and reservoirs being only around *** full by mid-July contributed to the delayed planting, resulting in daily arrivals falling to **,***, **,*** bags. The new crop is not expected before March ****, adding to the supply pressure.