Stockpiles of castor oil, used as a laxative and a lubricant in race-car engines, are set to drop 16 percent by the end of September as lower supply from India forces demand rationing, Oil World said.
Global production will slide to a four-year low of 624,000 metric tons in the 2013-14 season through Sept. 30 from 648,000 tons a year earlier, the Hamburg-based oilseed researcher wrote in a report today. Ending inventories will fall to 97,000 tons from 116,000 tons, it showed.
India grows more than three-quarters of the world’s castor seed, and farmers in the country were discouraged from sowing after a record 2011-12 crop pushed down prices, Oil World said in May. China is the biggest importer of castor oil, followed by the European Union and the U.S.
“For the supplies in 2013-14, it will be decisive to what extent the sharply lower plantings in India will be offset by a recovery of yields,” Oil World said. “We assume a setback in Indian production and exports of castor oil, necessitating also some rationing of import demand.”
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