Castor seed to remain bearish on low demad

Domestic castor seed futures are seen bearish next week due to low demand and good arrivals, traders and analysts said today.

International castor oil prices are seen flat due to lack of buying interest and moderate demand from European and Chinese importers, they said.

Castor futures next week are seen bearish due to good arrivals and lack of international demand next week, an analyst said today. "Bearish sentiment continues to prevail in the market due to expectation of arrivals picking up in the week ahead," an analyst said.

In the spot market, all-India arrivals today were around 30,000 bags (75kg), up 5,000 bags from last week. Castor seed prices hovered at Rs 375 per 20 kg, flat from February 22.

"Futures prices would be under pressure due to lack of buying support from international players," he said.

Resistance level will be around Rs 385 per 20 kg while support will be at Rs 371 on National Commodity and Derivatives Exchange.

Arrivals are expected to pick up from Gujarat and Rajasthan, putting pressure on prices, a trader said.

On NCDEX, March contract on Wednesday reached Rs 383.00 per 20 kg, down Rs 2.90 from February 22.

Demand for castor oil import from European countries continues to be low, a castor trader said.

Orders from China and Europe are far and few, leading to weak demand, a trader said. International buyers are busy consuming their oversized inventories, he added.

Global castor seed oil rates stayed flat at $920 a tonne compared with February 22.