Castor cools on profit-booking

Our Correspondent Rajkot | Updated on February 15, 2011

BL16_COM2_CASTOR   -  Business Line

Castor-seed prices declined on Tuesday on profit-booking, after continuous increase in the past few days.

At the Rajkot Commodity Exchange (RCX), castor-seed March contract dipped by Rs 132 to Rs 5,221 a quintal. It dropped by Rs 300 from Saturday's close of Rs 5,522 a quintal. RCX spot castor was down from yesterday's Rs 5,727.50 a quintal to Rs 5265 a quintal, a decrease of Rs 462.50. It has fallen by Rs 637.50 in the past couple of days.

On the National Commodity and Derivatives Exchange, castor-seed February contract decreased by Rs 228.50 to Rs 5495.50 a quintal, with an open interest of 3,170 lots. March contract fell by Rs 219 to Rs 5,266.50, with an open interest of 8,550 lots.

About 50,000-55,000 bags arrived in Gujarat at Rs 1,050-1,100/20 kg, and 1,400 bags arrived in Saurashtra quoting at Rs 1,040-1,080.

According to market analysts, profit-booking was expected in castor seed, as it had gained continuously, and it is expected to continue in the short term.

prices to drop further

Traders said prices will not sustain at the current levels as fresh supplies from Gujarat and Rajasthan gain momentum from mid-February. Moreover, exporters' demand will also be dry up once they have fulfilled their commitments.

Published on February 15, 2011

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