Castor futures to trade in narrow range

Castor seed futures are expected to trade in a narrow range over the next one week due to absence of any fresh fundamental triggers ahead of Christmas holidays, analysts said.

"Range-bound trade is expected with a slight positive bias," said an analyst with a Mumbai-based brokerage.

Globally, trading activities are expected to be at a low level as Europe and America enter into holiday mode before Christmas and New Year celebrations.

However, castor seed contracts are expected to move in tandem with edible oil.

"Castor seeds will follow sentiments in the edible oil group," said another analyst with a Delhi-based brokerage.

The most-active January contract on National Commodity and Derivatives Exchange is likely to get good support at Rs 410 per 20 kg, while short-term resistance is pegged at Rs 421.If the contract breaches the Rs 421-level, the next resistance level is seen at Rs 423.

Export buying ahead of Christmas is expected be at a low level, said a Gujarat-based trader. Exporters have almost fulfilled their export commitments for December delivery.

Daily arrivals in Hyderabad are expected to come down by 1,000 bags (1 bag= 70kg each) to 7,000 bags next week.

Arrivals in Gujarat are expected to be around 8,000 bags (1 bag=75kg) daily, and about 3,000-4,000 bags (1 bag=75kg) in Rajasthan.

Arrivals from the new crop will start picking up from the last week of December.

In Gujarat, castor seed spot quoted Rs 415-422 per 20 kg, while Hyderabad spot ranged Rs 1,870-1,880 per 100 kg.

Traders expect Gujarat spot to move in a four-rupee range next week, while it is likely to trade in a Rs 20-range in Hyderabad.