Fresh selling is likely to emerge in castor seed futures from higher levels due to fresh arrivals in local mandies along with higher production estimates in the current year. The NCDEX futures to encounter fresh selling from 4222-4230 levels in the near term.
As per market sources, fresh arrivals of around 45-60 thousand bags have been reported in the major mandies of Gujarat with the price range of Rs 3600-3700 per quintal , while Andhra Pradesh mandies have reported the daily new arrivals of 3-4 thousand bags with the price range of Rs 3400-3500 per quintal. Traders are expecting rise in daily arrivals from the February end due to new supplies from Rajasthan.
The prices will also be discouraged by higher production in the current year. As per the latest release from Central Organisation for Oil Industry & Trade (COOIT), the total production estimates of castor seed crop for the current year is reported at 12.05 lakh tonnes, up 5.42% from the last year. This is mainly due to strong production estimates of Gujarat and Rajasthan.
The NCDEX Castor seed March delivery settled at Rs 4184 per quintal , up marginally by 0.36% in last trading. The NCDEX futures declined by almost Rs 100 per quintal in last one week. Technically, selling is likely to emerge from 4222-4230 levels, while supports are likely at 4140-415 levels in the near term.