Castorseed prices bounced up on Thursday, gaining three per cent.
The oilseed for September delivery was up at Rs 3,850 a quintal on the National Commodity and Derivatives Exchange following fresh buying by traders at lower levels.
Castorseed prices for the October contract gained 1.4 per cent at Rs 3,990, while November contracts moved up 1 per cent to Rs 4,102 a quintal.
Rains in August in the major producing State, Gujarat, have not helped much with traders waiting for the rain in the State to pan out, seen renewing their positions fuelling up sentiment.
Though the monsoon deficit in the State has reduced, the acreage and output are lower. As such the long-term outlook for the commodity remains bullish.
India is the largest producer of castorseed in the world and the biggest exporter of castor oil.
According to Agriculture Ministry data, the country’s castorseed acreage was 5,91,600 hectares as of August 16, down almost 33 per cent from a year ago.
With the counter witnessing some bullish action, sellers brought their produce to the market. Spot prices were ruling low on account of higher arrivals and at Disa (Gujarat), castorseed ruled at Rs 3,877 a quintal.