Castor seed futures drop further on weak physical demand

Castor seed prices extended losses by Rs 40 to Rs 4,220 per quintal in futures trade today as investors cut positions on weak demand in physical and overseas.

Market players said liquidating of bets continually by operators depressed by the weak trend in spot markets due to increased supplies amid fall in demand for soap, paint and lubricant industries mainly kept the castor seed futures prices negative for the second consecutive day today.

Besides, muted export demand also weighed on investor sentiment to some extent, they added.

At the National Commodity and Derivative Exchange, castor seed delivery for the May contract moved down further by Rs 40, or 0.94 per cent, to Rs 4,220 per quintal, with an open interest of 20,870 lots.

The delivery of the April contract also went down by Rs 36 or 0.86 per cent to Rs 4,171 per quintal, with a business turnover of 51,630 open lots.