Mumbai, 04 Dec (Commoditiescontrol): The Indian castor seed market has started witnessing the arrival of the new crop, with expectations of larger arrivals in the coming months. According to traders, the anticipation of significant supplies within the next one to one-and-a-half months has led to increased bearish activity in the futures market. This sentiment has also spilled over into the spot market, where prices softened by ₹5-10 per 20 kg today. Earlier speculation about a potential shortage of castor seeds has been dispelled as arrivals continue uninterrupted, albeit in limited quantities for now.
At present, mandis are receiving 15-20 bags of new castor seeds daily, but traders expect substantial pressure on the market once the arrivals gain momentum after January 15. The futures market’s bearish tone has already begun to weigh on spot prices, and traders predict that prices will likely remain in the range of ₹1,250-1,300 per 20 kg until January.
Today, approximately 23,000 bags (1 bag = 35 kg) of castor seeds arrived across markets. Gujarat accounted for 20,000 bags, Rajasthan contributed 2,000 bags, and direct trades with mills involved an additional 1,000 bags. Despite the increase in arrivals, prices in the spot market remained steady at ₹1,260-1,275 per 20 kg.
Meanwhile, price movements in the futures market prompted millers to adjust their quotes. For example, Jagana Shippers initially quoted ₹1,305 per 20 kg but reduced their rate to ₹1,300 by the end of the day. Similarly, N.K. lowered its price from ₹1,320 to ₹1,315, while Kandla’s prices dropped from ₹1,300 to ₹1,295 per 20 kg. In the castor oil market, prices for Kandla delivery also softened slightly, with Reddi-Reddi quoting ₹1,320 per 10 kg in the morning and closing at ₹1,317.
The National Commodity and Derivatives Exchange (NCDEX) reflected the bearish trend as futures contracts recorded declines across all months. The December contract dropped ₹25 to close at ₹6,480 per quintal, while the January and February contracts fell ₹19 and ₹20, closing at ₹6,550 and ₹6,600 per quintal, respectively.
With new crop arrivals steadily increasing, the market’s focus remains on how the supply-demand dynamics will evolve in the coming months. The anticipated pressure from arrivals could continue to drive bearish trends in both the spot and futures markets until January.
(By Commoditiescontrol Bureau: 09820130172)
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