Talk of the Forward Market Commission increasing margins for castor contracts led to profit booking on Wednesday, pulling down prices. Prices may fall further this week, said a broker here.
Castorseed’s September contract on the Rajkot Commodity Exchange declined by Rs 137 to Rs 4,432 a quintal, while spot rates fell by Rs 100 to Rs 4,025 a quintal. During the past two days, the September contract has lost Rs 264 a quintal. On the National Commodity and Derivatives Exchange, castor’s September contract was down Rs 179 to Rs 4,374 a quintal with an open interest of 88,990 lots, while October lost Rs 188 to Rs 4,536 a quintal with an open interest of 39,920 lots.
About 50,000-55,000 bags of castorseed arrived in Gujarat and quoted at Rs 790-810 for 20 kg. Around 2,000-2,500 bags arrived in Saurashtra and quoted at Rs 770-810 for 20 kg.