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- Commodity Fundamentals - 2004 Articles


Castor Beans

Castor bean plants are native to the Ethiopian region of tropical east Africa. The seeds of the castor bean are used to produce castor oil. The average castor bean seed contains 35% to 55% oil. The oil is removed from the bean seeds by either pressing or solvent extraction. Castor oil is used in many products. In the US, the paint and varnish industry is the largest single market for castor oil. It is also used for coating fabrics, insulation, cosmetics, skin emollients, hair oils, inks, nylon plastics, greases, and hydraulic fluids.

Ricin is one of the most deadly, naturally occurring poisons known. It received attention when it was used in a subway attack in Japan in 1995 and again recently when it was sent to a Congressional office in an envelope in February 2004. Ricin is found in all parts of the castor bean plant, but the most concentrated amounts are found in the cake by-product after oil extraction. One non-deadly use for ricin is for medical research where it is being studied for use as a potential treatment for cancer.

Supply – World production of castor-seed beans in 2002/3 fell to 989,000 metric tons from 1.033 million metric tons in 2001/2. The world’s largest producer of castor-seed beans by far is India with 59% of world production in 2002 at 580,000 metric tons. The second and third largest producers are China with 27% of world production (265,000 metric tons) and Brazil with 7% of world production (72,000 metric tons).

Demand – US consumption of castor oil in 2002/3 fell sharply to 20.971 million pounds from 34.099 million pounds in 2001/2. US consumption of castor oil has fallen by more than half in the past three years.



*Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources—reports from governments, private industries, and trade and industrial associations—are authoritative, and its historical scope is second to none. Additional information can be found at: http://www.crbtrader.com/pubs/yb.asp
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