Castor price was continued to gain on export demand on Wednesday. Moreover arrivals slightly declined in Gujarat. Farmers are not selling their stocks on expectation of higher return as castor sowing has decreased in India.
On Rajkot Commodity Exchange, castor March contract was increased Rs 68 to Rs 4,122 per quintal, spot castor price was gained Rs 7.50 to Rs 3,697.50 per quintal.
At National Commodity and Derivatives Exchange, castor January contract was increased Rs 60 to Rs 3,908 per quintal, with an open interest of 116,540 lots. NCDEX February contract was increased Rs 58 to Rs 3,997 per quintal with an open interest of 38,540 lots.
About 12,000-13,000 bags castor arrived in Gujarat and price was Rs 730-737 per 20 kg. About 2,900-3,000 bags castor arrived in Saurashtra and price was Rs 710-740 per 20 kg.
Till October in 2012-13, India had exported 2.79 lakh tonne of castor oil, more than 2.63 lakh tonne during the same period last year. The trade body now estimates castor seed acreage at 11.81 lakh ha, down by 11.6%, while 2012-13 castor seed output is pegged at 10.7 lakh tonne, down almost 33.9%.
According to market expert, not much downside is likely in prices as farmers will not sell at such low levels given the lower output in the coming season. But the carryover stock from last season may cap sharp gains, keeping prices in a narrow range. Keep a close watch on weather in the next month as it may impact the yield.