Castor oil and castor oil derivatives

26. July 2018

The Indian monsoon season is unpredictable.


There are already speculations about a lower seed surplus in 2019. Farmers have been dissatisfied with the price development again this year. There is a risk that they might turn to alternative products, but this is likely to be a short-term issue. At the beginning of July, the Indian government set minimum prices for oil seeds.

Exchange rates have developed negatively over the past three months, moving from an EUR/USD rate of approximately 1.21 to 1.17 at present.

The monsoon season – an overview of the rains

In this article, we will tell you a little more about the Indian monsoon season. After the start of the early monsoon at the beginning of June, the country saw relatively little rain for two weeks. In early July, the rains were already falling again in Maharashtra. While the Gujarat region is still recording below-average levels of precipitation, forecasts are largely positive. The following chart illustrates the rainfalls (as at 23/07/2018):

Source: India Meteorological Department / Government of India

Normally, seed analyses are made after the monsoon finishes in August or September. Compared to the previous year, we are currently seeing a large gap that needs to be filled. This is nearly on par with 2016, when a similar level of approximately 0.50 was recorded at the same time of the year. We will let you know about the final results over the course of August and September.

Here is a comparison of 2017 and 2018:


ALL INDIA


In Lakh Hectare

S. no.

Oil seeds

2018

2017

Diff. (+/-)
Diff %

1

Peanut

23.01

29.08

-6.07

-20.87

2

Soy bean

93.87

84.64

9.23

10.91

3

Sunflower seed

0.66

0.96

-0.30

-31.25

4

Sesame seed

5.18

7.40

-2.22

-30.00

5

Niger seed

0.24

0.36

-0.12

-33.33

6

Castor seed

0.63

1.26

-0.63

-50.00

Please note that the All India Motor Transport Congress (AIMTC) has called a strike for 20 July 2018. This will delay the arrival of the containers at the port. Please work with our logistics department to plan your requirements ahead of time.

Our sales team will be happy to assist you.

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