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.

The Optimistic Undertone In Castor Seed Futures - June 30,2008

Mumbai: The optimistic undertone in castor seed futures is hoped to continue as the arrivals likely to shrink further in the coming days. Castor seed is sown in July and August and harvested in January. The inflow into Gujarat spot markets has fell to 30,000 bags (of 75 kg each) during the week from 80,000 bags. Prices of castor seed in the spot markets are on the increase amidst strong export demand and are quoted at about Rs 570 for a 20 kg bag. Export price of castor seed oil meal is quoted at $150 a tonne. India is one of largest exporters of castor seed and its derivatives like oil and oil meal. The weakness in barley futures is hoped to remain in the short term. The steady decline in open interest and low volumes amidst softening prices indicate that the market is in overbought position.