The current market price at the origin in India is on an attractive and more or less stable price level. The stronger USD influences the positive trend with a higher price. Current price developments and a long-term trend is indeterminate since the market follows the currency exchange rate scenario. At the moment the post period of the monsoon has been started which is the time before the Indian festival Diwali. The supply of the seed arrivals which happened between the farmers and the seed traders has declined considerably, this means material will be used only from stock positions. This reflects the higher prevailing procurement price since couple weeks in the origin due to storage and finance costs. The summer period is finished and large volumes have been bought by China. Also Europe was quite active in the market to secure volumes till end of 2014. According to current reports there is a larger area under cultivation for the new planting cycle in comparison to the previous year. Due to the low carry-in stock the price situation will be still exiting. To provide a detailed statement and forecast of the new crop we are awaiting more information about the yield per hectare which will be available within the ongoing weeks. In this connection the growth of the plants will be influenced by the weather and climate conditions. Please consider that on the 23rd October 2014 there is the religious Diwali festival in India. This will be started some days in advance and continue to go one week after the public holiday. During these days the market will be completely closed!
Taking into account the above mentioned factors we advise you to cover your demand including December 2014 for Castor oil FSG, 12HSA, HCO and Sebacic acid. We guarantee that material is still available according the required quality. During November and December we can provide you more information about the upcoming new crop which will be started in Q1 / 2015 in the main planning areas of India.