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After rising sharply in the past few days, castor seed price dropped more than 3 per cent in the futures as well as spot market as market participants covered profit.
At Rajkot Commodity Exchange, castor seed March contract dropped by Rs 173 from Rs 5,466 to Rs 5,293 per quintal and June contract declined by Rs 170 to Rs 5,190 from Rs 5,360. RCX spot price was quoted at Rs 5,465 with a fall of Rs 174 a quintal. About 45,000-50,000 bags arrived in Gujarat and price was Rs 1,130-1,140 per 20 kg, in Saurashtra 1,600 bags arrived and price was Rs 1,130-1,176.
On the National Commodity and Derivatives Exchange, castor seed March contract came down by Rs 223 or 3.99 per cent to Rs 5,363 per quintal, with an open interest of 9,200 lots. April contract decreased by Rs 214 to Rs 5,263 with an open interest of 3,450 lots.
SLACK DEMAND
Market analysts said profit booking by traders on existing higher levels mainly pulled castor seed futures prices down. Slackness in demand from consuming industries against fresh arrivals in physical markets too affected the trading, they added.
The Solvent Extractors Association of India (SEA) said that in 2010-11, India's production of castor seeds is likely to rise by 22 per cent to 11.90 lakh tonnes against 9.78 lakh tonnes in 2009-10.
Meanwhile, the Neilson India survey carried out by the SEA said that the maximum rise in production has been estimated in Andhra Pradesh, followed by Rajasthan and Gujarat.
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