Castor prices decline 2.5% as cash margin goes up

NCDEX levies 20% special cash margins effective Monday

Castor seed prices declined by up to 2.5 per cent on Monday following the imposition of a 20 per cent margin on all buy-side contracts by the National Commodity and Derivatives Exchange (NCDEX).

The NCDEX levied the 20 per cent special cash margin on long (buy) side contracts with effect from March 27. With this, the applicable margins on castor seed are 29.98 per cent on the long side and 9.98 per cent on the short (sell) side. Increased margins force traders to reduce their positions, resulting in a price decline. 

Castor seed for delivery in July declined by 2.44 per cent