Bearish Trend To Resume In Castor seed Futures .

Bearish trend is likely to persist in castor seed futures in the wake of weak export demand of castor oil cake along with strong production in the current year.

As per latest release from Solvent Extractors' Association of India (SEA), India's total exports of castor seed oil cake during the March -April 2010-11 were reported at 2.09 lakh tonnes against 2.40 lakh tonnes that were reported last year in the same period.

Moreover, strong production estimates in the current year also reported some selling at higher levels. As per latest crop survey report of Nielson India , done on the behalf of Solvent Extractors' Association of India (SEA ) , India's estimated total castor seed production for the year 2010-11 is expected to gain over 22 % from the last year to 11.9 lakh tonnes. While the total crop acreage for castor seed has also increased by 14 % against last year to 8.59 lakh hectares. This was mainly due to remunerative prices of castor seed throughout the last one year along with strong export demand of castor oil. In NCDEX, the prices of May Benchmark contract shaved off almost Rs. 34 per quintal to settled at Rs. 4956 per quintal in last trading.

Source : indiainfoline.com