Castor seed To Rise Further On Strong Oil Export Demand

Bullish trend is likely to continue in castor seed market on account of weak sowing progress in the current years along with strong export demand of castor oil. The NCDEX futures increased byRs47 per quintal in the last trading.
As per latest data released by Ministry of Agriculture, the total sowing acreage of castor seed as on 27th June reported at 0.33 lakh hectares, down 23% from the last year in the same period. This was mainly due to low prices of castor seed throughout the year.
The strong export of castor oil will add some more gains in castor seed market. As per the latest release from SEA of India, the total exports of castor oil in May is reported at 59,990 tonnes , up 52% from the last year.
The NCDEX August Castor seed futures increased by Rs 47 per quintal today to close at Rs 3482 per quintal. The NCDEX futures added 6.24% in open interest indicating fresh long positions by traders. Technically, prices are likely to gather some supports from 3440-3442 levels while resistances are likely at 3520-3530 levels in the near term.
Source by Commodity Insights