Castorseed futures rebounded from last week lows and gained by the maximum permitted level on the NCDEX as traders created fresh positions. Good export demand also aided the positive trend.
October futures increased 4 per cent to Rs 3,602 a quintal on the NCDEX. November and December contracts gained by Rs 142 and Rs 144 to Rs 3,671 and Rs 3,732, respectively.
Most of the castor growing areas have reported steady progress in sowing. Yields are also expected to be better. However, prospects of higher production on the back of improved rainfall in the major producing regions may cap gains.
India is the largest producer and exporter of castor seed and its oil, meal. According to the latest data from the Solvent Extractors' Association of India, India's total castormeal exports during April-August were reported at 1.12 lakh tonnes, up 58 per cent from the last year in the same period. Export of castor oil reached 30,963 tonnes for August 2012, against 35,130 tonnes for July.
The SEA's castor crop survey estimates domestic production at 1.61 million tonnes for the 2011-12 season (October-September), showing a growth of about 30 per cent over the 1.25 million tonnes recorded in 2010-11.
The spot market was steady and at Disa (Gujarat) castorseed was quoted at Rs 3,639.3 a quintal.