Speculative selling drags castorseed

Castorseed spot and futures prices declined on Wednesday on lower domestic demand and heavy selling by market participants.

According to market sources, export demand is also expected to come down.

According to Kedia Commodity, demand from shippers and soap manufacturers is low.

In the futures market, castorseed slipped further on speculative selling due to subdued export enquiries. Heavy arrivals in physical market pull down castoseed futures and spot prices. Castor oil prices plummeted as demand stagnated and supply increased.

Support for the castorseed is seen at Rs 3,076 and below it, the commodity could test Rs 3,036. Resistance is now likely to be at Rs 3,196 and a move above could see prices facing resistance at Rs 3,276.

On the National Commodity and Derivatives Exchange, castorseed June contracts declined by Rs 129 to Rs 3,116 a quintal with an open interest of 29,990 lots. NCDEX July contracts dropped by Rs 132 to Rs 3,175, with an open interest of 15,090 lots.

On the National Multi Commodity Exchange, castorseed June contracts slid by Rs 97.40 to Rs 3,155.60 a quintal.A total volume of 3084 lots was traded on Wednesday. At the Rajkot Commodity Exchange, castorseed June contracts decreased Rs 94 to Rs 3,124 from the previous close of Rs 3,218. RCX spot castorseed declined by Rs 17.50 to Rs 2,990 a quintal.

About 110,000 to 125,000 bags of castorseed arrived in Gujarat and the price was Rs 575-605 for a maund of 20 kg.

In Saurashtra, about 12,000-13,000 bags castorseed arrived and there were quoted at Rs 570-602 a maund .

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