The Hindu Business Line : Castorseed futures fall on poor buying

CASTORSEED futures have declined sharply by Rs 230 per 100 kg or 12 per cent during the past fortnight after a continued rally last month. The decline has been attributed to lack of fresh buying support from exporters, coupled with increased inflows in the physical market.

Castorseed June contracts on the Ahmedabad Commodity Exchange (ACE) on Thursday ended at Rs 1,671 per 100 kg against Rs 1,903 per 100 kg on April 2, due to limited buying support from exporters and stockists.

Castorseed August contracts, too, have fallen by Rs 50 during the last two days. On Thursday, it ended at Rs 1,743 per 100 kg. However, trading in August contracts resumed at Rs 1,790 per 100 kg, at a premium of Rs 50/Rs 55 per 100 kg over June contracts. Castorseed spot prices in Ahmedabad, too, have declined by Rs 200 to Rs 1,625 per 100 kg in the last fortnight in the wake of increased seed inflows.

"Prices have been falling in last few days, despite reports of fresh export deals. Fresh deals of about 5,000 tonnes have been reported for China and France at $880/$920 (Rs 38,720/Rs 40,480) per tonne," a leading exporter said.

"The seed arrivals in the major market yards in Gujarat have been steadily increasing over past few days. Average arrivals of seeds in April are around 35,000 bags (each of 75 kg). In fact, seed arrivals have dropped slowly from 35,000 bags to a low of 6,000 bags per day in March, due to the closure of market yards at the end of the financial year," a leading broker said.

"Prices may improve from the current level as some farmers are speculating in the market by storing the seed themselves to keep it out of the market yards in the hope of a higher price," he said.

On the other hand, castor oil prices ex-Kandla have declined by nearly Rs 20 to Rs 375 per 10 kg.

The ex-tank price in Rotterdam has also moved down about $40 at $1,035 per tonne on restricted demand as there are reports that stock of about 45,000 tonnes are lying at Rotterdam port.