Despite of lower demand in spot market, castor seed future price was gained on the back of some limited buying support.
On National Commodity and Derivatives Exchange, castor August contract was increased Rs 57 to Rs 3,465 per quintal with an open interest of 55,990 lots. NCDEX September castor seed was moved up Rs 49 to Rs 3,517 with an open interest of 28,940 lots.
According to Kedia Commodity from Mumbai, castor seed contract gained due to some buying support but upside was limited on the back of higher production in the crop year amid poor overseas demand.
At Rajkot Commodity Exchange castor September contract was gained Rs 48 to Rs 3,508 per quintal.
Against it RCX spot castor price was declined Rs 32.50 to Rs 3,157.50 per quintal on lower demand.
Castor was traded down by Rs 10 to Rs 615-630 per 20 kg in various markets of Gujarat and about 25,000-30,000 bags of castor seed arrived in Gujarat. About 3,600-3,700 bags of castor arrived in Saurashtra region and price was quoted down by Rs 10 to Rs 600-640 per 20 kg.
Industry insiders estimate a total castor production of about 1.7 to 1.75 million tonnes (mt) in India, higher by about 500,000 tonnes from the last year.
Now support for the castor seed is seen at 3399 and below could see a test of Rs 3,336. Resistance is now likely to be seen at Rs 3,502, a move above could see prices testing Rs 3,542, says Kedia Commodity.