Castor seed gained nearly 3.60 per cent on Wednesday on short covering on the back of delayed monsoon and heavy speculative demand as higher export enquiries were seen in the market. Also sentiment improved after oils and oilseeds market bounced back.

On the National Commodity and Derivatives Exchange (NCDEX), castor August contract gained Rs 146 to Rs 4,199 a quintal, with an open interest of 40,140 lots. NCDEX September contract increased Rs 152 to Rs 4,290 for 100 kg, with an open interest of 64,640 lots.

On Rajkot Commodity Exchange, castor September contract was higher by Rs 104 to Rs 4,235 a quintal and RCX spot castor price moved up by Rs 23.50 to Rs 3,725.

About 70,000-75,000 bags castor arrived in Gujarat at Rs 740-760 for 20 kg. About 3,800-4,000 bags arrived in Saurashtra at Rs 700-740.

A Kedia Commodity report showed that deficit monsoon in growing areas, particularly in Gujarat, and lower sowing of the crop was pushing up prices in futures and spot markets. Scarcity of rains will once again lead Gujarat farmers to sow castor seed, a crop traditionally considered for dry season. As this will be the last options left for farmers castorseed will again see bumper cultivation.

(This article was published on July 25, 2012)
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