Castorseed prices fell by 0.85 per cent to Rs 4,180 per quintal in future trade on the back of weak spot as well as overseas markets sentiment.
Marketmen said traders preferred to book profits on a weak spot market and overseas trend that mainly pulled down the prices in futures trading.
At the National Commodity and Derivatives Exchange, castorseed for March contract declined by Rs 36, or 0.85 per cent to Rs 4,180 per quintal, with an open interest of 1,66,850 lots.
Castor Oil & Cake Prices
| Castor Oil | Castor Cake | |
| Closing Price (Rs / quintal ) | 8,700 | 835 |
| Previous Day Closing Price (Rs / quintal ) | 8,700 | 825 |
Castor Seed Futures
| Month | Price (Rs/ quintal) |
| March | 4255 |
| April | 4304 |
| May | 4369 |
| June | 4449 |
| July | 4560 |
Castorseeds bold and castor oil commercial dropped in an otherwise lack lustre Vashi oils and oilseeds wholesale market due to reduced demand from shippers and soap industries.
Meanwhile, groundnutoil, refined palmolein and linseed oil all held steady in the absence of any large-scale buying activity.
In the non-edible segment, castor seeds bold dipped by Rs 65 per 100kg to Rs 4,025 from last Saturday’s closing level of Rs 4,090 and castoroil commercial declined by Rs 13 per 10kg to Rs 835 from Rs 848.
However, groundnut oil, refined palmolein and linseed oil all closed unchanged at Rs 760, Rs 640 and Rs 850 per 10 kg, respectively.
Castorseed prices tumbled by Rs 81 to Rs 4,522 per quintal in future trading on 11th March following selling by traders in line with weak spot and overseas markets sentiment.
Marketmen said increased supply and slackness in demand in physical markets mainly led to the fall in futures prices of castorseed.
Easing export on falling demand in overseas markets also influenced the market sentiment, they said.
At the National Commodity and Derivatives Exchange, castorseed prices for July contract drifted Rs 81, or 1.76 per cent, to Rs 4,522 per quintal, in an open interest of 4,600 lots.
March contract dipped by Rs 59, or 1.38 per cent, to Rs 4,217 per quintal, with an open interest of 32,720 lots.
Most active April contract fell by Rs 60, or 1.38 per cent, to Rs 4,286 per quintal, clocking an open interest of 1,87,950 lots.
The state government and trade bodies have estimated low castor seed production in India for 2013-14, based on which, Junagadh Agriculture University (JAU) has predicted castor prices may rise from March to May.
The Department of Agricultural Economics at JAU analysed the historical monthly price data of castor collected from Agricultural Produce Marketing Committee (APMC) at Patan. Based on the econometric analysis of castor price and in consultation with the National Agricultural Innovation Project, Domestic and Export Market Intelligence Cell, Tamil Nadu Agricultural University, Coimbatore, it has been noticed that the prices of castor may remain in the range between Rs 760 and Rs 860 per 20 kg from March to May this year. “The farmers must take note of this, take their own decision to store castor and sell after May 2014. Keeping the situation in view, if export opportunities continue to remain better, there are chances that prices may go up in future days,” Maganlal Dhandhalya, associate research scientist at Department of Agricultural Economics in JAU, said.
Expecting less production and strong export demand supported by weak Indian rupee, castor price started rising from Rs 700 per 20 kg in first week of November 2013 and touched Rs 900 per 20 kg in third week of December 2013. Currently, it is priced at Rs 800 per 20 kg in various markets of Gujarat.
According to the study, export of castor oil increased over 10 per cent per annum for this year from last two years and is likely around 5.80 lakh tonnes. The domestic consumption is estimated to be about 1.50 lakh tonnes in 2013-14, which indicates that, total expected production of current will be utilized. Indian castor seed production declined from a record high of 2.29 million tonnes in 2011-12 to 1.96 million tonnes in 2012-13 and is further likely to fall about 1.64 million tonnes (as per second advance estimate dated 14-02-2014) in 2013-14, as the area under the crop shrunk from 1.47 million hectares in 2011-12 to 9,84,000 lakh hectares in 2013-14. This has been attributed to low castor prices of Rs 700 per 20 kg from March, 2012 over the last two years.
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.
On the National Commodity and Derivatives Exchange, October contracts increased by Rs 35 to Rs 3,474 a quintal with an open interest of 1,25,890 lots.
November contracts gained by Rs 41 at Rs 3,579, with an open interest of 44,910 lots.
On the Rajkot Commodity Exchange, December contracts increased by Rs 44 to Rs 3,714. RCX spot castor declined by Rs 37.50 to Rs 3,410 a quintal.
Castor oil traded flat at Rs 720 for 10 kg.
Spot prices, however, decreased as recent rains have raised hopes of higher sowing of the crop that is grown during the rabi season.
The trend in castor seed futures for September delivery on India’s National Commodity and Derivatives Exchange (NCDEX) is bearish.
On 20th August , support for NCDEX castor seed is seen at 3360 and 3310 levels while resistance is seen at 3440 and 3500 levels at Commodity Online. NCDEX castor seed for September delivery was seen trading down by 1.42% at Rs.3400 per 100 kgs.
As of now, NCDEX castor seed is seen exhibiting bearish trend despite weak INR. Generally depreciation of INR against USD supports the commodities in the futures market.
Read More at: http://www.commodityonline.com/news/india-castor-seed-futures-bearish-despite-weak-indian-rupee-55970-3-55971.html