Spot and futures prices of castorseed rose on Wednesday as arrivals declined. Moreover, traders expected government agencies buying also supported the market.
A Rajkot-based castor trader said, “Selling by farmers are restricted as price went down in the past and as a result arrival of castor is on the decline. Though, it may improve on some buying expectation and overseas demand.”
According to brokers, some rumours in the market that government agencies may come to market to buy castor seed in coming days. On the Rajkot Commodity Exchange, castor seed June contract gained Rs 37 to Rs 2,987 a quintal and September contract by Rs 45 to Rs 3,164.
On the National Commodity and Derivatives Exchange (NCDEX) castor seed July contract gained Rs 48 to Rs 3,029 a quintal, with an open interest of 33,050 lots. NCDEX August castor contract rose Rs 52 to Rs 3,093 for 100 kg with an open interest of 17,080 lots.
Arrival of castor declined to 50,000 bags from previous day's 60,000-70,000 bags in Gujarat ruling at Rs 560-590 for 20 kg. About 5,000 bags arrived in Saurashtra region quoting Rs 530-570.