Short-covering lifted castorseed futures on Wednesday following profit booking on Tuesday. Spot prices declines on slow demand.
A Rajkot-based trader said that domestic demand in castorseed is low and ample supply in physical markets is putting pressure on prices. However, demand may emerge at lower levels in coming days.
A broker said that participants in the futures market covered their needs, expecting demand in the spot market in coming days. On the Rajkot Commodity Exchange, castorseed June contracts increased by Rs 26 to Rs 3,017 a quintal, while September contracts gained Rs 29 at Rs 3,180.
RCX spot castorseed was declined Rs 82.50 to Rs 2,932.50 a quintal.
About 80,000-85,000 bags arrived in Gujarat and the price was Rs 565-590 for a maund of 20 kg. About 5,500-6,000 bags arrived in Saurashtra and price was Rs 555-595 a maund .
On the National Commodity and Derivatives Exchange, (NCDEX) June contracts gained Rs 35 to Rs 2,994 a quintal with an open interest of 7,380 lots. July contract was moved up Rs 23 to Rs 3,049 with an open interest of 36,720 lots and August contract traded higher by Rs 26 to Rs 3,122 with an open interest of 11,710 lots.