Commodities

Spot castor zooms on tight supply

Our Correspondent Rajkot | Updated on January 25, 2011 Published on January 25, 2011

BL20_COM2_CASTOR





Spot as well as futures prices of castor zoomed on short supply and delay in arrival of the new crop.

Prices have been rising constantly in the past 10 days and spot castorseed prices touched an all-time high.

On the Rajkot Commodity exchange (RCX), March contract increased Rs 127 a quintal to Rs 4,070 from Tuesday's close of Rs 3,947.

RCX spot rate touched Rs 4,565 against Rs 4,427, a gain of Rs 138 a quintal.

On the National Commodity and Derivatives Exchange, castorseed for March shot up by Rs 164.50, or 4.01 per cent, to Rs 4,270.50 a quintal, with an open interest of 5,270 lots.

February month contract jumped Rs 165 to Rs 4,604, with an open interest of 6,904 lots. Arrivals were down from 40,000 bags to 25,000 bags on Wednesday in Gujarat.

spot demand

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

lower arrivals

“Cold and untimely rain affected the yield of the castor crop this year and as a result, the season started late by two months. At present, lower arrivals are pushing castor futures and spot prices higher. In the near future, chances of a decline in the prices are removte,” said Mr Harilal Chaganlal, a senior member of RCX.

Published on January 25, 2011
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