Commodities

Castor futures zoom on lower arrivals

Our Correspondent Rajkot | Updated on February 02, 2011

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On Wednesday, castor futures increased by Rs 131 and spot price jumped over Rs 180 a quintal on lower arrivals.

At the Rajkot Commodity Exchange (RCX), castorseed March contracts ruled at Rs 4,682 a quintal, gaining Rs 131 from the previous close of Rs 4,551 a quintal. Spot castor prices rose Rs 187.50 to Rs 4,977.50 from Rs 4,790.

On the National Commodity and Derivatives Exchange, castor delivery for March was up Rs 188 to Rs 4,881.50, with an open interest of 7,950 lots.

About 45,000-50,000 bags of 60 kg each arrived in Gujarat at Rs 995-1,015/20 kg. In Saurashtra, 2,300 bags arrived at Rs 970-1,001.

According to industry experts, in order to meet the demand, arrivals need to be around 75,000-80,000 bags a day, as against approximately 40,000-50,000 currently. They said that castor crop for the previous year stood at around 9.3 lakh tonnes, while this year, the expectation is above 12 lakh tonnes, showing a growth of about 30-35 per cent.

Mr Raju Pobaru, President, RCX, said: “Demand in spot is huge as shippers are buying to complete their export orders. But the supply is poor. Prices in futures market has increased on the back of higher spot prices. It will not come down till the spot prices decline.”

“At present, lower arrivals are pushing up castor futures and spot prices. There are no chances in the near future for prices to cool down,” said Mr Harilal Chaganlal, a senior member of RCX.

Published on February 02, 2011

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