Castor seed futures rose despite limited buying by market participants, while spot castorseed dropped due to poor demand.
On the Rajkot Commodity Exchange, castorseed March contracts increased by Rs 41 to Rs 4,362/quintal. RCX spot castorseed declined by Rs 55 to Rs 4,090/quintal.
On the National Commodity and Derivatives Exchange , castorseed January contracts moved up by Rs 63 to Rs 4,365 , with an open interest of 10,850 lots. NCDEX February contracts gained by Rs 67 at Rs 4,428 , with an open interest of 185,090 lots.
About 12,000-13,000 bags of castorseed arrived in Gujarat and prices fell by Rs 10 to Rs 825-840/20 kg.
Around 3,000-3,100 bags arrived in Saurashtra and prices declined by Rs 10 to Rs 760-805/20 kg.
A Rajkot-based commodity trader said that prices in the futures market increased despite interest being lower.
At the spot market, castor price had reached to Rs 920-925 per 20 kg bag But soon after that, castor seedprices started declining as demand for export came down and now it is being traded at Rs 800-810 per 20 kg. Prices, therefore, have decreased nearly 12 per cent or Rs 110 per 20 kg .
On the National Commodity and Derivatives Exchange (NCDEX), the castor seed contract for February 2014 went down by about 16 percent during a week. NCDEX February contract was traded on Rs 4,248 per quintal on Friday while it closed on Rs 5,056 per quintal a week ago.
Delayed and lower sowing on account of unfavorable weather conditions has hampered production. Gujarat and Andhra Pradesh, the two largest castor growing states, witnessed shortage of rainfall during the sowing period. Globally too, castor supplies are likely to remain tight. Sowing area was lower this year by 35-40 per cent, coupled with decline in estimated yield due to inconsistencies in the monsoons in major growing regions.
Traders estimate total availability at 1.4 million tonnes this year, as compared with 2.4 million tonnes in the previous year.