Despite lower demand in the spot market, castorseed futures gained, backed by some buying support.
On the National Commodity and Derivatives Exchange (NCDEX), castor August contracts increased by Rs 57 to Rs 3,465 a quintal, with an open interest of 55,990 lots. The NCDEX September castorseed contract increased by Rs 49 to Rs 3,517, with an open interest of 28,940 lots.
According to Kedia Commodity from Mumbai, castorseed contracts gained due to some buying support but the upside was limited. This was because of higher production in the crop year despite poor overseas demand.
On the Rajkot Commodity Exchange, castorseed September contracts gained Rs 48 to reach Rs 3,508 a quintal.
Against this, the RCX spot castorseed price declined by Rs 32.50 to Rs 3,157.50 a quintal on lower demand.
Castorseed traded lower by Rs 10 to Rs 615-630 for 20 kg in various markets in Gujarat where about 25,000-30,000 bags arrived. About 3,600-3,700 bags of castor arrived in Saurashtra region and the price quoted was down by Rs 10 to Rs 600-640 for 20 kg.
Industry insiders estimate a total castor production of about 1.7 to 1.75 million tonnes in India, higher by about 5,00,000 tonnes from last year.
Now, support for castor seed is seen at Rs 3,399, below which it could be tested at Rs 3,336. Resistance is now likely to be seen at Rs 3,502.
A move above this level could see prices tested at Rs 3,542, says Kedia Commodity.