Tuesday, December 16, 2008

Castor Seed Futures Sharply Short Covering Drives Upwards - Dec 16, 2008

Castor seed futures drove sharply up today as a hefty bout of short covering proved instrumental in bringing in impressive gains for the commodity. The spot prices are also trading off one month lows in Disa today, arresting the two day losing streak as some bargain buying emerged in the commodity.

The movement in the other oilseeds was mixed today but the Castor seed futures seemed to be discounting the fact that waning arrivals in the days to come would support the prices. The commodity has experienced a steady up trend since the beginning of the month in the futures market even as spot prices lingered in a relatively tight band.

NCDEX December futures hit a high of Rs 576 and currently trade at the same level, gaining Rs 6.20 per 20 kg or 1.09% with a massive 13.16% drop in the open interest. The counter expires on 19 December. Spot prices edged up to Rs 576.50 per 20 kg in Disa, up Rs 1.80 on the day.

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