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Castor Seed
Castor seed prices declined by upto 2.5 per cent on Monday following 20 per cent margins levied on all buy side contracts by the National Commodity & Derivatives Exchange (NCDEX) to cool down spiraling prices.Through a circular dated March 24, NCDEX levied 20 per cent special cash margins on long (buy) side contracts with effect from today i.e. March 27, 2017. With this, the applicable margins on castor seed works out to 29.98 per cent on long side and 9.98 per cent on short (sell) side.The increase in margins helps proportionate lower availability for cash for trading which helps traders to reduce their positions resulting into price decline. As a consequence of this special margins, castor seed for delivery in July 2017 declined by 2.44 per cent to Rs 4949 a quintal. All other active contracts also declined, albeit marginally. Open interest in all active castor seed contracts also declined on Monday. "Castorseed price declined on Monday due to 20 per cent margins levied on buy ..
Prices of castor seed continue to surge on the back of lower production and expectation of good export demand for castor oil and meal in the coming months.Seed prices have already reached a two-year high at the National Commodities and Derivatives Exchange (NCDEX) and physical markets. In the latter, seed prices have risen by 21.3 per cent during March itself."The market has reacted on a lower production estimate and that's why prices of seed have gone up sharply. However, it is just the beginning of fresh arrival and will increase in the coming days. This may pressurise castor prices," said Haresh Vyas, managing director of Royal Castor Products.Currently, 90,000-100,000 bags (each 60 kg) of seed are arriving in the markets, mainly in Gujarat. Prices of the commodity are now Rs 4,830 a quintal. Last year at this time, it was Rs 4,100 a qtl, while arrival was about 125,000 bags. At NCDEX, castor seed's most active April contract gained Rs 189 or four per cent to Rs 4,925 a qtl on ...
The Securities and Exchange Board of India (Sebi) announced a relaxation of its interim order against those accused in a price manipulation case of castor seed on the National Commodity and Derivatives Exchange (NCDEX) a year before.Last May, it had issued restraint orders against 18 entities from dealing in the securities market, as an interim measure till the investigation was concluded. That was after a development in January on the exchange, when castor prices started falling and those having long positions couldn't pay the mark to market margin. And, NCDEX had to suspend castor seed futures in end-January 2016.Sebi investigated and took restraint action against 18 entities, including edible oil major Ruchi Soya. It charged them with collusive action.Wednesday's order from Sebi wholetime member G Mahalingam says: "I find it appropriate to accede to the request for relief sought by the noticees and permit them to trade in the commodity derivatives markets for the limited purpose ..