Castorseed futures dropped on profit-booking by traders with lower demand aiding the trend further. Prices of spot castorseed also declined. But the main trigger for the fall was arrivals flooding markets.
According to market sources, selling pressure was seen in castor and arrivals crossed over one lakh bags in Gujarat.
Along with this the domestic and export demand is weak currently, putting pressure on castorseed.
A Rajkot based broker said: “In present condition, if arrivals continue to be over over one lakh bags a day, then prices will decline further. The overall export demand is still low due to shipment issue at ports.”
On the Rajkot Commodity Exchange, castorseed June contracts declined by Rs 18 to Rs 3,099 a quintal and September contracts fell by Rs 12 to Rs 3,265. The RCX spot castorseed declined Rs 37.50 to Rs 3,020 a quintal.
About one lakh bags arrived in Gujarat on Wednesday against 80,000-85,000 bags on Tuesday. Prices were quoted Rs 580-600 for a maund of 20 kg, down by Rs 20.