Castorseed futures declined on Wednesday due to profit booking by traders. Moreover, buying also was slow in the spot market as prices have shot up in the past two weeks.
According to market analysts, market participants have begun to book profits after the market rallied in last 8-10 days. A Rajkot-based trader said that profit booking may continue for the next few days as prices have increased by over Rs 350 a quintal this month. Due to this, demand at current levels has declined and price could head south further.
On Rajkot Commodity Exchange (RCX), September castorseed contracts decreased by Rs 44 to Rs 3,484 a quintal. Spot castorseed was traded marginally lower by Rs 2.50 to Rs 3,235.
On the National Commodity and Derivatives Exchange (NCDEX), castorseed July contract slipped by Rs 25 to Rs 3,361 a quintal with an open interest of 23,620 lots. NCDEX August contracts declined by Rs 27 to Rs 3,421, with an open interest of 34,060 lots.
About 55,000-60,000 bags of 75-kg each arrived in Gujarat and quoted at Rs 625-645 for a maund of 20 kg and 5,000-5,500 bags arrived in Saurashtra quoting Rs 595-640.