The refined castor oil market in the United States turned bearish due to increased volumes from India and subdued spot inquiries in February 2026. Early in the month, Indian crushers processed their main December–January seed arrivals, improving export availability. Logistics eased mid-month, with softening freight rates and rising stock levels at Gulf Coast terminals. Although late-February buying remained steady, it was characterized as non-urgent as buyers reduced inventories. Demand for castor oil focused primarily on specialty lubricant blenders, nylon-11 polymer producers, and personal-care ester makers, which supported consistent consumption. However, weak demand in construction-linked coatings due to winter weather limited incremental buying. Upstream dynamics improved as Indian crushers handled arrivals without significant disruptions. While availability increased, rising energy costs and higher bunker-related insurance premiums continued to challenge the market. Looking forward, ongoing trade uncertainties and geopolitical tensions in the Middle East are anticipated to impact future castor oil prices and supply-chain stability. Market participants should remain attentive to these evolving conditions.
