A mixed trend was seen in the castorseed market on Wednesday. Spot prices dropped on higher arrivals and weak demand, while the futures market turned bullish on short-covering.
Castor futures have declined in the last few days mainly due to profit booking. However, on Wednesday participants began to cover since may had gone short when the declining trend persisted.
At the Rajkot Commodity Exchange (RCX), castorseed June contracts increased by Rs 32 to Rs 3,422 a quintal. Spot castorseed prices on the exchange dropped by Rs 60 to Rs 3,115 a quintal.
On National Commodity and Derivative Exchange (NCDEX), castor for May delivery increased Rs 44 to Rs 3,405 a quintal with an open interest of 16,850 lots. NCDEX June contracts gained Rs 44 at Rs 3,465 for a quintal, with an open interest of 9,400 lots.
About 1,20,000-1,25,000 bags arrived in Gujarat and the price was Rs 600-625 for a maund of 20 kg. Around 13,000-14,000 bags of castorseed arrived in Saurashtra and they were quoted at Rs 600-625 for a maund.
According to traders, arrivals of castorseed were very and in contrast, demand was poor. However, any fall in prices is likely to be capped as buyers could enter the market are current levels seeing it as an opportunity for bargain hunting.
PTI reports: In Mumbai, castorseeds bold and castor oil commercial declined on subdued offtake from shippers and soap industries.
Linseed oil also dipped owing to selling pressure amidst lack of demand from paint and allied industries.
Castorseed bold fell by Rs 40 a quintal to Rs 3,300 and castor oil commercial eased by Rs 8 for 10 kg to Rs 690.
Linseed oil slid by Rs 15 for 10 kg to Rs 775.