Castor rose on Wednesday after traders started covering in anticipation of higher demand. Demand from exporters and mills is likely to go up but arrivals of over a lakh bags this month will cap gains, said a trader here.
Castorseed's June contract on the Rajkot Commodity Exchange increased by Rs 28 to Rs 3,607 a quintal, while spot castor was up Rs 55 to Rs 3,402.50. About 60,000-65,000 bags arrived in Gujarat and sold at Rs 660-685 for 20 kg, while around 9,800-10,000 bags arrived in Saurashtra and traded at Rs 650-685.
On the National Commodity and Derivatives Exchange, castor's April contract gained Rs 45 to Rs 3,590 a quintal with an open interest of 11,940 lots, while May increased by Rs 55 to Rs 3,650 with an open interest of 5,950 lots.
According to latest data released by Solvent Extractors Association of India, 3,41,308 tonnes of castorseed and meal were exported between April 2011 and March (2,09,036 tonnes).