MUMBAI (Commoditiescontrol) - Castor seed price at the benchmark Deesa market has recorded more than 2 percent of gain during January month so far supported by good demand against estimated lower crop this season. However castor seed futures rose around 3.7 percent since re-launch so far. Spot castor seed was last traded (Tuesday) at Rs 3,915/100kg.
Castor seed market witnessed gain mainly due to poor supply this season supported by increased buying interest after re-launch of castor seed futures on the National Commodity & Derivatives Exchange Ltd (NCDEX).
Supply of castor seed in the country as of January 10, 2017 of the current year stood 12,088 metric tonnes, up from 10,619 metric tonnes same period a year ago, according to Agmarknet.
The lower supply of the commodity during the season was mainly attributed to subdued production this season. Recently The Solvent Extractors' Association of India (SEA) estimated domestic crop 19 percent lower at 11.30 lakh tonnes against 14 lakh tonnes a year ago due to drop in acreage amid poor remuneration to farmers.
Fall in castor seed production will ultimately result in lower castor oil availability. SEA in its estimates said castor oil availability in 2017 will be at 5.09 lakh tonnes, down from 6.30 lakh tonnes a year ago.
Daily arrivals of castor seed at present is sufficient to cater slow demand from crushers amid disparity due to lower meal rates. According to trade sources castor oil exports inquiries are not very encouraging at present, however likely to improve from China and EU going forward supported by depreciating Indian currency.
Meal prices continued to quote lower on subdued export demand to South Korea. Excess supply at the millers and sufficient stocks at the destination is weighing on the meal prices which is quoting lower by 25 percent on year-on-year. Meal export are expected to be thin in coming days due to ample supply over destination which may weigh on meal prices in the near term.
According to recent SEA data the country castor meal exports during April-December 2016 was stood at 3.23 lakh tonnes against 3.70 lakh tonnes previous year. South Korea sourced around 3.05 lakh tonnes, down 13 percent from 3.52 lakh tonnes from same period a year ago.
(By Commoditiescontrol Bureau; +91-22-40015533)