Castor seed futures on NCDEX surge to two-year high
Castor seed futures on National Commodities and Derivatives Exchange (NCDEX) surged to two years high on Wednesday, supported by forecasts of weaker output, slower arrivals in physical market and expectation of good export demand for castor seed derivative products (meal and oil) in coming months.
Most active castor seed futures for April delivery on the NCDEX rose 2.25 per cent to Rs. 4,740 a quintal at 16.00 hrs today, the biggest daily gain this week. It will be the fourth consecutive weekly gain if the price continues to trade higher this week too. Castor seed prices on NCDEX have jumped more than 23 per cent since it is re-launch in January 2017.
"The traded volumes in castor seed clocked an average of 9,600 lots of 10 tonnes each this week which was 4000-5000 lots in the previous week. The market participation rose in this counter as speculators sees good opportunity in earning good profits as the prices may rise further on forecasts of weaker output coupled with encouraging meal and oil exports data during February compared to previous month," said Ritesh Kumar Sahu (Fundamental Analyst – Agri Commodities, Angel Broking
According to Solvent Extractors' Association (SEA) of India, castor seed acreage for the country in 2016/17 season declined by about 24.2% to 8.40 lakh hectares compared to last year acreage of over 11.08 lakh hectares. Castor Crop Survey 2016-17 released by SEA, castor production in Gujarat is expected to be 8.61 lakh tonnes (lt) in 2016-17 as compared to 11.73 lt the previous year.
Most active castor seed futures for April delivery on the NCDEX rose 2.25 per cent to Rs. 4,740 a quintal at 16.00 hrs today, the biggest daily gain this week. It will be the fourth consecutive weekly gain if the price continues to trade higher this week too. Castor seed prices on NCDEX have jumped more than 23 per cent since it is re-launch in January 2017.
"The traded volumes in castor seed clocked an average of 9,600 lots of 10 tonnes each this week which was 4000-5000 lots in the previous week. The market participation rose in this counter as speculators sees good opportunity in earning good profits as the prices may rise further on forecasts of weaker output coupled with encouraging meal and oil exports data during February compared to previous month," said Ritesh Kumar Sahu (Fundamental Analyst – Agri Commodities, Angel Broking
According to Solvent Extractors' Association (SEA) of India, castor seed acreage for the country in 2016/17 season declined by about 24.2% to 8.40 lakh hectares compared to last year acreage of over 11.08 lakh hectares. Castor Crop Survey 2016-17 released by SEA, castor production in Gujarat is expected to be 8.61 lakh tonnes (lt) in 2016-17 as compared to 11.73 lt the previous year.
