Castor seed futures firm on low supply

Domestic castor seed futures are seen firm in the coming week on dwindling arrivals and short covering by exporters, traders and analysts said today. International castor oil prices are also seen up on hopes of demand emerging from European countries, they said.

"Spot arrivals this week have come down to 30,000 bags (1bag=75kg) from 50,000 bags in the same period in April," said Biren Vakil, director, Paradigm Commodities. According to Vakil, the arrivals have gone down drastically and sudden demand could lead to a sharp rise in prices in the coming week.

"Though demand has been moderate, supply has been shrinking at a much faster rate," he added. Castor seed spot prices were at Rs 403 per 20 kg, up Rs 6.60 from Wednesday's close.

Analysts said the prices may see a surge in the week ahead on hectic buying by exporters to meet their future needs. Analysts feel the May contract could move in a range of Rs 400-420 per 20 kg on the National Commodity and Derivatives Exchange. The contract today touched Rs 406.70 per 20 kg on NCDEX, up Rs 6.40.

Global castor oil prices are also seen firm on hopes of demand emerging from European countries, a local trader said.