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Castor Seed An Outlook

Date : 8 April 2013


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Castor Seed- An Outlook


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Castor Seed An Outlook


Date : 8 April 2013
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1. Castor Oil Market


Castor seed (Ricinus Communis) in an important non edible oilseed crop and is grown especially in arid and semi arid region. It is originated in the tropical belt of both India and Africa .It is produced mainly in 3 states in India - Gujarat, Rajasthan and Andhra Pradesh. The Indian variety of castor has an oil content of 48%, out of 48% about 42% of oil is being extracted and the cake retains the rest The end user market for castor oil and castor oil derivatives is already quite diverse. With new applications of castor oil being explored, especially in areas such as pharmaceuticals and biopolymers / bioplastics, these end user markets for castor oil and its derivatives are expected to expand significantly over the next few years. India is world leader in castor bean production, followed by China and then Brazil. Global castor seed production is around 1 million tons per year. Leading producing areas are India (with over 60% of the global yield), China and Brazil, and it is widely grown as a crop in Ethiopia.

The Castor seed products have widespread application in many industries like Paint, Lubricant, Pharmaceutical, Textiles, etc.

2. Cultivation/ Seasonability
Castor is a Kharif season crop (Indian season of crop cycle), this crop needs a tropical type of climate to develop. Sowing of castor with onset of monsoon is found most beneficial in rained condition thats why the castor is largely found in the countries lying in the tropical belt of the world. In India, Castor is sowing season is during July or August and harvested around December or January. The arrivals would take 1-2 months time after harvest to peak up across major markets. The post harvest operations take a fort night to months time because of which peak arrival season would be December and January. Castor seed harvested from field is dried till the pods open. Seeds are hulled by using de-hullers or by hand to remove the seed from the pod. Seed contains about 50 percent of oil by weight. Extraction of oil from castor seeds is done in a manner similar to that for most other oil seeds. The ripe seeds are allowed to dry, when they split open and discharge the seeds. These seeds are cleaned, cooked and dried prior to extraction. Cooking is done to coagulate protein (necessary to permit efficient extraction), and to free the oil for efficient pressing. The first stage of oil extraction is pre-pressing, using a high pressure continuous screw press called the expeller. Extracted oil is filtered, and the material removed from the oil is fed back into the stream along with fresh material. Material finally discharged from the press, called cake, Contains 8 to 10 percent oil. It is crushed into a coarse meal, and subjected to solvent extraction with hexane or heptanes.

Castor Seed An Outlook


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A. Indian Scenario Castor is cultivated in 30 different countries on commercial scale, of which India, China and Brazil is the major castor growing countries accounting for 90 per cent of the worlds production. Historically, Brazil, China and India have been the key producing countries meeting global requirement India is the leader in global castor production and dominates in international castor oil trade. Gujarat is the chief producing state, having a share of 77-80% of domestic production, followed by Andhra Pradesh and Rajasthan. Bag packed of castor seed contains 75kg by weight.

Major Castor Seed Producing States Rajasthan 11% Andhra Pradesh 12%

Gujarat 77%

India is the worlds largest producer of the castor contributes to around 65 % of the worlds total production and dominating the global trade with a share of more than 8 %. India produces around 8 lakh tons of castor seed and around 3 lakh tons of castor oil. India meets more than 80% of the demand of castor oil, thereby enjoying a dominant Position in the World Castor Scenario The production in India has been witnessing an increasing trend since beginning of 2001-2011 decade due to increasing usage of castor oil in different industries. Moreover, strong export demand for castor oil was also one of the reasons for rise in production. Gujarat, Rajasthan, and Andhra Pradesh contribute 96% of the total castor seed production in India. a) Harvesting calendar:

Jun Castor Seed

July

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Sowing

Harvesting

Castor Seed An Outlook


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b) Crop Scenario All India: Total area under Castor crop in India for the year 2011-12 is 11.50 lakh hectares. It has increased by 34% as compared to previous year. Estimated total production of Castor Seeds in India for the year 2011-12 is 16.19 lakh tones. It has increased by 30% as compared to previous year. Average yield for the year 2011-12 is 1417 kg/hectare as against 1453 kg/hectare during the year 2010-11. It has decreased by 3% as compared to previous year. c) Statewise Area, Yield and Production of castor seeds in India (2011-2012)

Estimated District Crop('000tonnes)* 2010-11 201112 697 169 230 54

Area

Under

Estimated Estimated Yield* Production(Kg/Ha)*

% change

2010-11

2011-12

% change

2010-11

2011-12

% Change -6% -14% -4% -2% -3%

Gujarat Rajasthan Andhra Pradesh Other states Total

483 127 198 52 860

44% 33% 16% 3% 34%

900 180 140 30 1250

1226 207 156 30 1619

36% 15% 11% 1% 30%

1863 1417 707 576 1453

1760 1222 677 564 1417

1150

*Nielson India estimates, SEA, ITI Research d) Summary of Crop Scenario in Major Producing State: The overall area under castor seed crop for the year 2011-12 is reported at 6.97 lakh hectares, up 44% from the last year. This is mainly on the account of major spurt in all the districts of Gujarat this year. The castor crop area in Kachch, Surendranagar, Vadodara and Patan districts were grown by more than 50% in the current year. However, the average yield for the year 2011-12 is estimated at 1760 kg/hectare as against 1863 kg/hectare during the year 2010-11 due to waning rainfall in the major producing areas. The overall area under castor crop in Rajasthan for the year 2011-12 is reported at 1.69 lakh hectares, up almost 33% from the last year. Strong gains were reported in major castor seed growing areas such as Pali, Sirohi and Barmer as farmers are fetching the strong returns from castor seed. However, the estimated total production of Castor Seeds in Rajasthan for the year 2011-12 is estimated to gain only 15% to 2.07 lakh tonnes due to inadequate rainfall during the growth stage along with insufficient water. This might reduce the average yield of the state by 14% to 1222 kg/ hectares against 1417 kg/ hectare that was reported last year. The total area under castor crop in Andhra Pradesh for the year 2011-12 is estimated at 2.30 lakh hectares Up 16%from the last year.Strong gains were reported in major producing districts such as Anantpur, Kurnool and Prakassam. The estimated total production of castor seeds in Andhra Pradesh for the year 2011-12 is at 1.56 lakh tonnes, up almost 11% from the last year of 1.40 lakh tonnes. The overall average yield of the state is reported at 677 kg / hectare, down 4% from the last year as the total rainfall in the state declined by almost 25% in the current year.
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Castor Seed An Outlook


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e) Export of castor oil by India Being the largest producer, India is also largest exporter of castor seed oil and exports 80% of its total castor oil to China, which is the worlds largest importer of Castor oil followed by US, Japan, Thailand and other European countries. Indias Export of Castor Oil and derivatives are estimated to be over Rs.4000 cores (US $ 800 million )per annum and the whole world is highly dependent on India for the supply of this oil which is used in production of some vital chemicals. Exports from India have been increasing at the rate of 7% year on year in the last 3 years. In 2011-12, Indias exported 404,489 MT of Castor Oil compare to previous year 343254: 40% of it to China, 35% to Europe and 11% to USA. As per Recent Data, Export of Castor Oil reached 67,000 MT for the month of June 2012, against the export of 59,000 MT for the month of May 2012

B. INTERNATIONAL SCENARIO: The world production of castor seed hovers around at an average of 12.5 lakh tons and of castor oil is 5.5 lakh tons. Global consumption of castor oil is expected to rise marginally in the range of 630,000-640,000 tones in year 2010-11. The world production of castor seed hovers around at an average of 12.5 lakh tons and of castor oil is 5.5 lakh tons. The countries that imports castor oil from India are European Union, USA, Japan, China, Thailand, Brazil is estimated to produce one lakh tons, which was around 93,000 tons whereas Production in China is estimated at 1.80 lakh tons, up from 1.70 lakh tons last year.

a) World Production of Castor seed


PRODUCITON ('000/T) 2010200 11 9-10 101 190 1150 119 1560 93 170 970 114 1347 Yield (T/HA) 2008 -09 123 190 980 117 1410 201011 0.64 0.9 1.26 0.63 1.06 200 9-10 0.59 0.85 1.18 0.62 0.99 200809 0.76 0.86 1.13 0.63 0.98 Harvest ('000/ha) 2010 200 9-10 11 158 157 210 910 189 1467 200 820 185 1362 Area 200809 163 220 870 186 1439

COUNTRY

HARVEST SEASON

BRAZIL CHINA INDIA OTHER COUNTRIES WORLD

JunSept SeptJan NovMar

Source: www.oilworld.de,

Castor Seed An Outlook


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3. Factors influencing Castor prices:


o o o Sowing and progress of south-west monsoon in western parts of the country Production of castor seed in India and also in China and Brazil Arrivals pattern in spot markets Export demand for Indian castor oil and exchange rate Prices of other edible oils

4. Future demand-supply estimates for the various grades of castor oil and derivatives
Growth of Key End-User Segments The major end-use industries for castor oil derivatives castor oil are: - Lubricants & Greases - Coatings - Personal Care & Detergent - Surfactants - Oleo chemicals

5. Detailed introduction of castor oil and castor oil derivatives industry


Castor oil is possibly the plant oil industry's most underappreciated asset. It is one of the most versatile of plant oils, being used in over ten diverse industries. Owing to its unique chemical structure, castor oil can be used as the starting material for producing a wide range of end- products. The plant itself requires relatively less fertilizers, pesticides, water and maintenance than most other cultivated crops, and it can grow in marginal land. With so many unique advantages, one would expect the castor crop to be widely grown world over. Strangely, it is not so This is all set to change, as many companies, entrepreneurs and governments are waking up to the potential of the castor crop, castor oil and castor oil derivatives. In the past few years alone, many of countries which have little or no land under castor cultivation have started making serious exploratory efforts at growing castor. Many of companies are doing cutting edge research on the use of castor to produce bioplastics and biopolymers such as polyurethane, nylon and more. With the increasing use of biolubricants and biogreases, castor oil is emerging as the preferred feedstock choice, owing to the already prevalent applications of castor oil derivatives for these purposes. 6. Castor oil manufacturing The production process for the basic grades of castor oil are well known and well established. There are however a number of Innovative processes and emerging technologies for the production of value added castor oil chemicals and derivatives.

Castor Seed An Outlook


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a) Production Process for Dehydrated Castor Oil Castor oil has only one double bond in each fatty acid chain and so is classified as non- drying oil. However, it can be dehydrated to give semidrying or drying oil which is used extensively in paints and varnishes. Being a polyhydroxy compound, its hydroxyl functionality can be reduced through dehydration or increased by inter-etherification with a polyhydric alcohol. It must be noted that coatings that incorporate castor oil alone will never achieve complete cure through oxidative cross-linking as do coatings that contain oil with I multiple double bonds in their fatty acid components. For this reason, dehydrated castor oil assumes special significance. The dehydration process is carried out at about 250 oC in the presence of catalysts (e.g., concentrated sulphuric acid, activated earth) and under an inert atmosphere or vacuum. Under this condition of dehydration, the hydroxyl group and adjacent hydrogen atom from the C-11 or C-13 position of the ricinoleic acid portion of the molecule is removed as water. This yields a mixture of two acids, each containing two double bonds but in one case, they are conjugated. The presence of an acid containing conjugated double bonds results in an oil resembling tung oil in some of its properties. Thus, castor oil, which is non-drying, can be treated and converted into a semi-drying or drying oil known as dehydrated castor oil. b) Details of manufacturing the following castor oil grades & derivatives are also explained as below: Industrial / Commercial Castor Oil First Special Grade Castor Oil Cold Pressed Castor Oil Pale Pressed Castor Oil Pharma Grade Castor Oil Hydrogenated Castor Oil Sulfonated Castor Oil Blown Castor Oil Ricinoleic Acid 12-HSA Methyl 12-HSA Sebacic Acid Undecylenic Acid Methyl Ricinoleate Methyl Undecylenate 2-Octanol Heptaldehyde, Heptanoic Acid & Heptyl Alcohol

c) Castor Oil Chemicals & Derivatives Castor oil derives its unique properties from its distinct chemical structure. Many of the valuable derivatives of castor oil also owe their advantages to this unique structure. Data on the chemical structure and composition of the derivative are crucial to determine its suitability for specific applications and end uses. This chapter provides detailed inputs on the chemical structures, compositions and properties of castor oil, its various grades, and the diverse chemicals and derivatives.

Castor Seed An Outlook


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d) Chemical, Physical Properties & Specifications of Castor Oil Grades & Derivatives
Commercial Grade Castor Oil Appearance Colour in 1" Cell, Y+5R Lovibond Iodine Value Saponification Value Hydroxyl Value Acid Value Moisture & Volatiles Specific Gravity @ 20o C BP Grade Castor Oil Cas No EINECS Colour Relative Density at 20C Moisture Iodine Value Saponification Value Acid Value Unsaponfiables w/w Optical Rotation Hydroxyl Value Peroxide Value Light Absorption 8001-79-4 292-293-8 Nearly Colourless or Failtly Yellow 0.952-0.965 0.3% max. 82-90 176-187 2.0 max. 0.8% max. between +3.5 and 6.0 150 min. 5.0 max. 1max. Pale Dark Yellow 30 units max. 82 - 90 177 - 187 160 min. 2.0 max. 0.50% max. 0.954 - 0.967

7. Chemical background
Family Castor oil is a vegetable oil obtained from the castor bean (technically castor seed as the castor plant, Ricinus Communis, is not a member of the bean family). Castor oil (CAS number 8001- 79-4) is a colorless to very pale yellow liquid with mild or no odor or taste. Its boiling point is 313 C (595 F) and its density is 961kg/m3. It is a triglyceride in which approximately ninety percent of fatty acid chains are ricinoleic acid. Oleic and linoleic acids are the other significant components.

Nomenclature Structure of the major component of castor oil. Ricinoleic acid, a monounsaturated, 18-carbon fatty acid, is unusual in that it has a hydroxyl functional group on the twelfth carbon. This functional group causes
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Castor Seed An Outlook


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ricinoleic acid (and castor oil) to be unusually polar, and also allows chemical derivatization that is not practical with most other seed oils. It is the hydroxyl group which makes castor oil and ricinoleic acid valuable as chemical feed stocks. Compared to other seed oils which lack the hydroxyl group, castor oil commands a higher price. Castor oil and its derivatives have applications in the manufacturing of soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings, inks, cold resistant plastics, waxes and polishes, nylon, pharmaceuticals and perfumes. Sulfonated castor oil, also called sulfated castor oil, or Turkey Red Oil, is the only oil that completely disperses in water. It is made by adding sulfuric acid to pure castor oil. This allows easy use for making bath oil products. It was the first synthetic detergent after ordinary soap. It is used in formulating lubricants, softeners, and dyeing assistants. The castor seed contains ricin, a toxic protein removed by cold pressing and filtering. However, harvesting castor beans is not without risk. Allergenic compounds found on the plant surface can cause permanent nerve damage, making the harvest of castor beans a human health risk. India, Brazil, and China are the major crop producers and the workers suffer harmful side effects from working with these plants. These health issues, in addition to concerns about the toxic byproduct (ricin) from castor oil production, have encouraged the quest for alternative sources for hydroxyl fatty acids. Alternatively, some researchers are trying to genetically modify the castor plant to prevent the synthesis of ricin. Typical Properties of Castor Oil Unique to castor oil is that regardless of where the beans are grown, the chemical composition remains constant. It is this consistency that has allowed castor oil to be used as the absolute standard for viscosity by the Bureau of Standards. Castor oil has a molecular weight of 298, a low melting point (5C) and a low solidification point (12C to 18C). It is a monounsaturated fatty acid, soluble in pure alcohol, insoluble in water and has some miscibility in petroleum aliphatic solvents. It resists heat and leaves virtually no residue. There are two grades sold, pharmaceutical and industrial, and there are first, second and third quality in the industrial grades. Pressed castor oil, extracted with no solvents, is called first quality. Castor beans have been a relatively stable product for over 25 years. Weather has been a major factor in production fluctuations for some countries, and total world production has exceeded a million tons per year since the 1980's. The USSR was a major producer until 1990; however, today the major producing countries are India, Brazil and China. India currently produces 90% of the world's castor seeds and is responsible for 80% of the world's export product. China's production has doubled since 1970, while India's has increased four-fold. China, the EC and Japan have been major importers of castor oil.

8. Castor Beans Oil Yield vs. Other Vegetable Oils Yield


This next chart is a great comparison of the chemical make-up of some vegetable oils. The obvious standout is the high concentration of ricinoleic acid in the castor oil -90%. Again, this concentration is consistent regardless of where the castor bean is grown.
% Avg Oil Content 45% 42% 38% 48% 18% 52% Oleic Acid 3% 32% 20% 26% 27% 40% Linoleic Acid 4.2% 19% 16% 62% 53% 8% Linolenic Acid 0.3% 7% 50% 7% Ricinoleic Acid 90% 9

Castor Rapeseed Linseed Sunflower Soyabean Palm

Castor Seed An Outlook


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9. Castor Uses
Castor oil in food In the food industry, castor oil (food grade) is used in food additives, lavorings, candy (e.g., chocolate), as a mold inhibitor, and in packaging. Polyoxyethylated castor oil (e.g., Cremophor EL) is also used in the foodstuff industries. a) Medicinal use of castor oil The United States Food and Drug Administration (FDA) has categorized castor oil as "generally recognized as safe and effective" (GRASE) for over-the-counter use as a laxative, with its major site of action the small intestine. However, although it may be used for constipation, it is not a preferred treatment. Undecylenic acid, a castor oil derivative, is also FDA-approved for over-the-counter use on skin disorders or skin problems. Castor oil penetrates deep into the skin thanks to its molecular weight, which is low enough to penetrate into the stratum corneum. Castor Isostearate Succinate is a polymeric mixture of esters with Isostearic Acid and Succinic Acid used for skin conditioning, such as in shampoo, lipstick and lip balm. Ricinoleic acid is the main component of castor oil and it exerts anti-inflammatory effects. One study has found that castor oil decreased pain more than ultrasound gel or Vaseline during extracorporeal shockwave application. Therapeutically, modern drugs are rarely given in a pure chemical state, so most active ingredients are combined with excipients or additives. Castor oil, or a castor oil derivative such as Cremophor EL (polyethoxylated castor oil, a nonionic surfactant), is added to many modern drugs, including:
Sno 1 2 3 Modern medicines Miconazole Paclitaxel Sand immune (cyclosporine injection, USP Nelfinavir mesylate Saperconazole Tacrolimus Xenaderm ointment Uses an anti-fungal agent a mitotic inhibitor used in cancer chemotherapy an immunosuppressant drug widely used in connection with organ transplant to reduce the activity of the patient's immune system an HIV protease inhibitor a triazole antifungal agent (contains Emulphor EL-719P, a castor oil derivative) an immunosuppressive drug (contains HCO-60, polyoxyl 60 hydrogenated castor oil);[citation needed] a topical treatment for skin ulcers is a combination of Peru balsam, castor oil, and trypsin

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b) Traditional or folk medicines The use of cold pressed castor oil in folk medicine predates government medical regulations. Cold pressed castor oil is tasteless and odorless when pure. Uses include skin problems, burns, sunburns, skin disorders, skin cuts, and abrasions. Note that most bottles of castor oil indicate the oil is to be kept away from the eyes. The oil is also used as a rub or pack for various ailments, including abdominal complaints, headaches,
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muscle pains, inflammatory conditions, skin eruptions, lesions, and sinusitis. A castor oil pack is made by soaking a piece of flannel in castor oil, then putting it on the area of complaint and placing a heat source, such as a hot water bottle, on top of it. Castor oil has also been noted for its acne-healing abilities. Castor oil has been used to induce childbirth in pregnant women, though it is not always effective in application. Castor oil, when ingested, triggers cramping in the bowel (making it an effective laxative). Thus, it is intended that such cramping. In south Egypt, women use a large spoonful dosage of castor oil to prevent pregnancy for one year. It has also been claimed that castor promotes eyelash growth, however there's no supporting scientific data. c) Industrial Uses The name ricinus is a latin word for tick; the seed is so named because it has markings and a bump at the end which resemble certain ticks. the common name "castor oil" probably comes from its use as a replacement for castoreum, a perfume base made from the dried perineal glands of the beaver (castor in latin). it has another common name, palm of christ, or palma christi, that derives from castor oil's ability to heal wounds and cure ailments. Castor oil has numerous applications in transportation, cosmetics and pharmaceutical, and manufacturing industries, for example: adhesives, brake fluids, caulks, dyes, electrical liquid dielectrics, humectants, hydraulic fluids, inks, lacquers, leather treatments, lubricating greases, machining oils, paints, pigments, polyurethane adhesives, refrigeration lubricants, rubbers, sealants, textiles, washing powders, and waxes. Vegetable oils, due to their good lubricity and biodegradability are attractive alternatives to petroleum-derived lubricants, but oxidative stability and low temperature performance limit their widespread use. Castor oil has better low temperature viscosity properties and high temperature lubrication than most vegetable oils, making it useful as a lubricant in jet, diesel, and race-car engines. However, castor oil tends to form gums in a short time, and its use is therefore restricted to engines that are regularly rebuilt, such as race engines. The lubricants company Castrol took its name from castor oil. Since it is has a relatively high dielectric constant (4.7), highly refined and dried castor oil is sometimes used as a dielectric fluid within high performance high voltage capacitors. Castor oil is the raw material for the production of a number of chemicals, notably sebacic acid, undecylenic acid, nylon-11. A review listing numerous chemicals derived from castor oil is available. Castor oil is the preferred lubricant for bicycle pumps, most likely because it doesn't dissolve natural-rubber seals.

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Castor Seed An Outlook


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d) Castor Oil End-uses - Lubricants & Greases - Coatings - Personal Care & Detergent - Surfactants - Oleo chemicals The ever-expanding end uses of castor oil and its derivatives make it imperative for businesses and companies to have an updated and comprehensive knowledge of the various applications of each castor oil derivative.

10. Castor Meal


Castor meal makes an excellent bio-fertilizer owing to its optimal composition of nutrients (especially N-P-K). The toxicity in castor meal makes it unsuitable for use as animal feed, thus resulting in a lower price for the meal while compared with prices of competing oilseed-meals such as soymeal or rapeseed meal. This combination of high fertilizer value and a low price has resulted in an ever increasing demand for castor meal from the organic fertilizer market worldwide.

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11.

Current Scenario
India's kharif castor seed production for the year 2012-13 is estimated lower at 11.43 lakh tons as compared to 15.76 lakh tons last year. This data was released by the Solvent Extractors Association of India (SEA) at Global Castor Conference. The significant fall in production is due to drop in acreage in Gujarat. Castors seed oil exports reached at 20,909 MT in January 2013, against 20,742 MT in December 2012, according to SEA. Delay in rains and higher exports in castor oil pulls up castor seed future and spot prices. Demand for castor seed in physical markets is good as crushers are buying it on a regular basis, also higher demand compared to arrivals is supporting prices. Gujarat Total area under castor crop in Gujarat for the year 2012-13 is 6.66 lakh hectares. It has decreased by 4% as compared to the previous year. The area under castor crop has decreased mainly in north Gujarat region whereas increased in Saurashtra region. Estimated total production of castor seeds in Gujarat for the year 2012-13 is 8.06 lakh tonnes, which has decreased by 32% as compared to the previous year. Last year was production was highest in the history of Gujarat. Production of castor seeds has decreased in all the castor growing districts. Average yield for the year 2012-13 is 1210 kg/hectareas against 1706 kg/hectare during the year 2011-12. Yield decreased by 29% as compared to last year. This year, castor producing districts of Gujarat have received 490 mm of rainfall which is 20% lower than normal and 35% lower than last year. Majority of the farmers opined that due to low rainfall, growth of castor crop has been hampered this year. Inadequate water availability also impacted castor crop yield this year. Rajasthan & Andhra Pradesh Total area under Castor crop in Rajasthan for the year 2012-13 is 1.57 lakh hectares. It has decreased by 7% as compared to the previous year. Area has been decreased in all the districts of Rajasthan this year.

NCDEX Contract Specifications Ticker at NCDEX Unit of trading (lot size) Price Quotation (base value) Tick Size Delivery / additional delivery center Trading time Castor Seed 10 MT Rs. Per Quintal Rs. 1 Deesa / Bhabhar, Kadi, Palanpur, Patan 10:00am to 5:00pm IST Mon-Fri 10:00am to 2:00pm IST Sat Expiry / Due date Delivery Logic Daily Price limit Position Limit: Client wise Member wise 20th of the delivery month Compulsory Delivery (+/-)4% [3+1]

8,000 MT for all contracts 40,000 MT for all contracts


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Castor Seed An Outlook


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12. TECHNICAL OUTLOOK:

Weekly Chart

Source: Reliance commodities research

Castor oil - Technical Outlook and Recommendation Castor seed seen moving in sideways in last couple of weeks infers consolidation being dragged for long time. We expect it to trade in the range of 3200-3800 for a while though major supports arising only at 2900-2700 levels. With Natural MACD and RSI (Relative strength Index) turning down can expect prices to drift further down till said 2900 levels and therefore one can sell below 3200 for short term target of 2900-2800. Those levels being a very strong support zone, Bull traders can start accumulating from 2900 for a potential target of 4800 then 5500 then 6000. Alternatively, one can wait for a weekly closing above 3900 to go long aiming the similar targets in future.

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Castor Seed An Outlook


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Reliance Commodities Ltd.: 11th Floor, R.Tech Park, Nirlon Compound, Western Express Highway, Goragaon (E), Mumbai 400063. Tel: (022) 3059 1234, 3059 1666

Ashutosh Mishra Research Team Niraj Shukla Krishna Rao Parasa Ravi Prakash Dakoji

National Head Commodities & Currency

ashutosh.ar.mishra@relianceada.com

Head - Research Sr. Technical Analyst Sr. Technical Analyst

niraj.o.shukla@relianceada.com parasa.krishnarao@relianceada.com raviprakash.dakoji@relianceada.com

Disclaimer: This report is prepared exclusively for Reliance Commodities Ltd. The information and opinions contained in the document have been compiled from sources believed to be reliable. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodity. Reliance Commodities Ltd. does not accept responsibility for any losses or damages arising either directly or indirectly from the use of this document.

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