Castor
seed futures on the NCDEX jumped for a fifth consecutive session today,
rising on a heavy rollover activity. Major spot markets buzzed with
heavy activity and good demand was seen in the ready markets. Bargain
buying is likely to continue in castor seed futures due to lower
production estimates for the coming year along with strong castor oil
demand. NCDEX Castor seed futures for May topped Rs 3700 per quintal
mark in intraday moves.
The total production of castor seed in
the current year is estimated at 9.5-10 lakh tonnes, down almost 5-6
lakh tonnes from the last year. This is mainly on account of a sharp
drop in total sowing acreage in Gujarat as farmers were diverted towards
other remunerative crops in the current year. The total production of
castor seed in Gujarat is estimated at 6-6.5 lakh tonnes, down almost
50% from the last year.
The commodity witnessed a drop during
late March. Not many supplies were seen in physical mandies as most of
the physical mandis were closed on account of Holi and other holidays.
However, now the activity is back on track and NCDEX May futures jumped
right from the start today.
The counter recorded a high of Rs
3702 per quintal and currnelty trades at Rs 3684 per quintal, up Rs 38
per quitnla or 1.02% on the day with 9.80% increase in open interest.
The near month April contract is up Rs 34 or 0.96% with near 10% drop in
the open interest - indicating that traders are rolling over their
positions to the benchmark contract.
Source by Commodity Insights
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