The Hindu Business Line : Castorseed futures fall 1.67 pc

Despite a drop in output to around 7.2 lakh tonnes this year from last year's 9.1 lakh tonnes, castorseed futures on NCDEX lost 1.67 per cent at Rs 353.80 per quintal. Area under cultivation has also fallen to 8.9 lakh hectares against 9.48 lakh hectares last year.

"The farmers have moved over to more remunerative crops like cotton and sugar. We expect prices to fall by around Rs 40 in the short term and fresh buying may take off from there," said Mr Harish Galipalli, head of research at Karvy Comtrade.

NCDEX on Monday recorded a turnover of Rs 2,758 crore against Rs 2,026 crore on Friday. Active trading was witnessed in guarseeds, chana, gold, soyabean, pepper and refined soya oil. MCX recorded turnover of Rs 2,655.36 crore against Rs 1,364.31 crore.

Soyabean and soya oil futures on NCDEX came under pressure on poor demand. Soyabean closed 1.65 per cent down at Rs 1,335 per quintal on good arrivals in spot, while soya oil lost 0.91 per cent at Rs 454. Tur futures on NCDEX gave in on selling pressure. "Desi tur fell by Rs 100-125 per quintal at the Barsi market, while in Akola, Latur and Jalna, it slipped by Rs 25-40 per quintal on thin inquiries from traders and millers coupled with rising supplies of new desi tur. Tur futures are expected to remain weak. We suggest going short at every rise," said a Kotak research report.

Chilli, sugar, turmeric and urad finished the day green while mentha oil for January delivery on MCX closed higher at Rs 651 per kg.