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Ahmedabad, April 11: Castor prices rallied across the board last week on the Ahmedabad Commodity Exchange (ACE) due to hectic buying and nervous short covering, according to traders.
In futures market, June contract rose to a high of Rs 1517 per quintal a contract while in the spot market, oil prices flared up to Rs 330 per 10 kg. Seed prices improved to Rs 300, said traders.
The June contract traded at Ahmedabad exchange closed at Rs 1514 from the last week's low of Rs 1438 per quintal.
Bulls have regained their control on the market as firm spot market have encouraged them to increase their long positions.
According to a leading trader, oil prices spurted due to hectic buying from the exporters, which also prompted bulls to go long in the futures. In the international market also, oil prices have recovered.
Ready delivery FOB prices improved to $800 from $750 a week ago. Some exporters have struck deals around $850 FOB Kandla. Arrivals, however, are steady-to-easy although off take seemsgood.
As spot prices fell to Rs 1450, stockiest have started their buying, farmers are also reluctant to sell their produce at such a cheaper prices.
According to one farmer, the castor crop this year may turn out lower than expected because of attack by a disease called Sukaro. At least 15 per cent crop is already damaged, he said. Earlier the crop was estimated at 7.50 lakh tonne, how ever actual output may come around seven lakh tonne, it is believed.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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