Higher supplies pull down castor seed



Castor seed futures traded on a negative note following higher supplies coming in from the new harvest. The most active February-month castor seed futures contract hit an 11-month low of ₹3,976 per quintal on Thursdayand ended the week at ₹4,045, down by 2 per cent over the previous week. At Deesa-Lakhni market, castor seed prices closed the week at around ₹3,870/quintal, down by ₹80 compared to last week amid increased supplies of 3,990 quintals . A similar trend was reported at Palanpur market, where the commonly traded variety saw prices go down by ₹65 to ₹3,915 a quintal.

Castor oil was quoting at ₹8,600 per quintal at Mumbai, down by ₹100 over the previous week while meal prices were unchanged at ₹436 per quintal. As on January 17, a total of 31,847 tonnes of castor seed were available at NCDEX approved warehouses, which is up by 161 tonnes over the previous week.

Outlook

Castor seed futures are expected to trade lower in the coming week. Supplies of fresh crop coming in may create a supply-demand mismatch. Moreover, expectation of higher yield in the growing regions of Gujarat, Rajasthan and AP because of favourable weather condition may keep prices down in the spot as well as futures market.

The writer is Head – Commodity Research, Karvy Comtrade

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