Castor seed futures in spotlight again as traders, buyers default on NCDEX

Within two years after their re-launch, castor seed contracts on the National Commodity and Derivatives Exchange (NCDEX) are once again in the spotlight. This is because of default by dozens of clients, and due to some brokers following a continuous downward circuit in oilseed prices.

Castor seed prices have hit the lower price circuit every day over the past six sessions on the NCDEX. The falling price attracted short sellers, which resulted in a huge bump-up in open positions on selling side.

“Unfortunately, there were no buyers at any price on the exchange. As prices fell, many trading clients on the NCDEX