The NCDEX on Friday imposed additional 5% margin on all castor seed futures contracts following the continual rally in the prices since the beginning of October month. The additional margin, 5% on both long side and short side, will be applicable with effect from October 30, 2018
The near-month Castor seed contract for November futures on NCDEX hit an intra-day high of Rs5,538 on Friday before closing at Rs5,486, highest levels since Rs6,200 seen in 2011.
Castor seed futures for November contract, witnessed continued rally since Oct 4, when the prices had quoted at Rs.4,680 per quintal, while the open interest remained 1,00,000 contracts for most of the sessions since Oct 4.
Castor seed is mainly grown in Gujarat and Rajasthan and there is a heavy demand for the derivatives and oil-cakes of in overseas markets including China.