NCDEX Castor Seed

Contract Specifications of Castor Seed

NCDEX Castor Seed: Live Prices, Market Insights, and Trading Overview

NCDEX Castor Seed refers to the futures contracts of castor seeds traded on the National Commodity & Derivatives Exchange (NCDEX) of India. Castor seeds are the primary raw material for castor oil, which is widely used in pharmaceuticals, cosmetics, lubricants, and industrial applications. NCDEX Castor Seed futures provide farmers, traders, and investors a platform to manage price risk and speculate on market movements.

India is the largest producer and exporter of castor seeds globally, making NCDEX Castor Seed prices a key indicator of domestic and international trade trends.

What Are NCDEX Castor Seed Futures?

NCDEX Castor Seed futures are standardized contracts with specified lot sizes and delivery months, allowing participants to efficiently hedge against price volatility.

Key features include:

• Contract Size: 10 Metric Tonnes per lot
• Tick Size: ₹0.05 per kg
• Settlement: Physical delivery at designated locations or cash settlement
• Trading Hours: 10:00 AM – 11:30 PM IST

These contracts help stakeholders lock in prices, plan procurement, and manage exposure to seasonal and market fluctuations.

Factors Influencing NCDEX Castor Seed Prices

1. Crop Production: Monsoon patterns, sowing acreage, and yield impact supply and pricing.
2. Global Demand: Export demand for castor oil and derivatives affects domestic castor seed prices.
3. Government Policies: MSP announcements, export duties, and subsidy schemes influence market expectations.
4. Industrial Consumption: Demand from oil refineries, cosmetics, and pharmaceutical sectors affects futures prices.
5. Global Commodity Markets: Prices may move in tandem with other vegetable oils and oilseed markets.

Trading NCDEX Castor Seed Futures

NCDEX Castor Seed futures are used by farmers, exporters, and traders for various purposes:

• Hedging: Farmers lock in prices to protect against falling market rates post-harvest.
• Speculation: Traders capitalize on price movements during harvest and lean seasons.
• Spread Trading: Investors trade castor seed futures against other oilseeds to exploit relative price differences.

Popular strategies include:

• Intraday Trading: Using technical indicators like RSI, MACD, and Bollinger Bands for short-term gains.
• Positional Trading: Holding contracts for weeks to months based on seasonal supply-demand expectations.

Historical Perspective

Castor seed trading on NCDEX began in the early 2000s, reflecting India’s organized commodity market growth. Key trends include:

• 2000s: Prices were influenced by domestic production and export demand, with steady growth in futures volume.
• 2010s: Fluctuations arose due to erratic rainfall patterns, global castor oil demand, and government policies.
• 2020s: COVID-19 initially disrupted logistics and export markets, but prices rebounded as industrial demand resumed, with futures playing a key role in price discovery.

Recent Update on NCDEX Castor Seed

As of September 2025, NCDEX Castor Seed is trading with moderate gains due to:

• Normalized production levels in major producing states like Gujarat and Rajasthan.
• Strong demand from domestic oil extraction units and export markets.
• Seasonal monsoon impact supporting stable yields, thereby moderating extreme volatility.

Market participants are closely watching crop reports, export trends, and government policy announcements to adjust positions in futures contracts.

NCDEX Castor Seed vs Global Market

India dominates global castor seed production, contributing to over 80% of global exports. While domestic NCDEX prices are influenced by local production and consumption, global trends in castor oil demand, especially from the U.S., Europe, and China, also affect futures pricing.

NCDEX futures act as a benchmark for price discovery, allowing traders to align domestic prices with global market movements and manage supply chain risks effectively.

Outlook for NCDEX Castor Seed

With growing industrial demand for castor oil derivatives, NCDEX Castor Seed futures are expected to remain actively traded. Factors such as weather patterns, export demand, and government policy will continue to drive price volatility. Traders and investors can benefit from monitoring seasonal crop cycles, global demand trends, and policy updates to make informed trading decisions.

NCDEX Castor Seed Futures FAQ

Q. What are NCDEX Castor Seed Futures?

A. NCDEX Castor Seed Futures are futures contracts based on the price of castor seeds, traded on the National Commodity & Derivatives Exchange (NCDEX) in India. Castor seeds are derived from the castor plant and are primarily used for extracting castor oil, which has applications in industrial, pharmaceutical, and cosmetic sectors. These futures serve as a key benchmark for the domestic castor seed market, often referenced in agricultural news as an indicator of supply, demand, and price trends in the oilseed sector.

Q. What are NCDEX Castor Seed Futures Contracts?

A. NCDEX Castor Seed Futures Contracts are standardized agreements to buy or sell castor seeds at a predetermined price on a future date, traded on the NCDEX platform. Each contract represents 10 metric tonnes (10,000 kg) of castor seeds, with prices quoted in Indian Rupees (INR) per 20 kg. These contracts are highly liquid and volatile, influenced by seasonal arrivals and global demand, offering traders multiple opportunities for profitable trades during trading sessions. For example, if you’re bullish on castor seed prices, you can go long on a futures contract, profiting from price increases. Conversely, if bearish, you can short the contract, gaining from price declines.

Q. What are the trading hours for NCDEX Castor Seed Futures?

A. Trading for NCDEX Castor Seed Futures occurs from 9:00 a.m. to 5:00 p.m. IST (3:30 a.m. to 11:30 a.m. ET) from Monday to Friday. Unlike global futures exchanges, NCDEX follows Indian market hours with no evening or weekend sessions, aligning with domestic agricultural trading patterns and providing active opportunities during the business day.

Q. Why and when were NCDEX Castor Seed Futures created?

A. Castor seed futures on NCDEX were initially launched in 2004 to provide farmers, processors, and traders a platform for price risk management and hedging against fluctuations in castor seed prices. The contracts were suspended in 2016 due to market irregularities but relaunched in 2017 with enhanced regulations. Designed to reflect the health of India’s castor seed market—where Gujarat accounts for about 86% of production—these futures serve as a vital tool for assessing agricultural sentiment and economic trends in the oilseed sector.

Q. What are the risks and benefits of NCDEX Castor Seed Futures trading?

A. NCDEX Castor Seed Futures trading differs from traditional commodity investing and carries significant risks. The volatility of castor seed prices, driven by weather, seasonal arrivals, and export demand, can lead to substantial gains but also rapid losses, making it unsuitable for conservative investors. Traders who can actively monitor the market and tolerate risk may capitalize on both long and short positions, as futures allow shorting without restrictions like the uptick rule. However, without disciplined risk management, traders risk margin calls if positions move unfavorably. The benefit lies in the potential for high returns due to the leverage and liquidity of these contracts, but constant attention to market movements is essential.

Q. How can I learn NCDEX Castor Seed Futures trading?

A. NCDEX Castor Seed Futures are a popular choice among agricultural traders, but beginners often face challenges due to limited understanding of commodity market dynamics and trading strategies. Success demands a robust trading plan, strict risk management, and deep market knowledge. Novice traders can accelerate their learning by joining online trading communities or live trading rooms led by experienced NCDEX Castor Seed Futures traders. These platforms enable beginners to observe real-time market analysis, learn strategies suited to their risk tolerance, and gain confidence. Using simulated accounts before trading with real money can also minimize costly errors.

Q. What are other names used for NCDEX Castor Seed Futures?

A. NCDEX Castor Seed Futures are known by several names or aliases, including:

• Castor Seed Futures
• NCDEX Castor Futures
• Castor Seed Contracts
• CASTOR Futures (NCDEX ticker symbol)
• Indian Castor Seed Futures