MUMBAI (Commodity Online): Castor seed prices at India’s National Commodity and Derivatives Exchange (NCDEX) dropped on Thursday on profit booking and good sowing progress although good export demand has provided firm support to prices.

NCDEX November contract fell 2.55% in afternoon trade to Rs 3626 per quintal with prospects of higher production on improved rainfall weighing on prices.

Support for NCDEX Castor Seed Nov is seen at Rs 3500, 3400 per quintal while resistance is seen at Rs 3700, 3755. The market appears to trade sideways but quite volatile.

In the domestic markets, as on 20th September, 2012, Oilseeds have been sown in 174.39 lakh ha so far, compared with 178.16 lakh ha same period last year.

India is the largest producer and exporter of castor seed and its oil, meal. According to the latest data from the Solvent Extractors' Association of India, India's total castormeal exports during April-August were reported at 1.12 lakh tonnes, up 58 per cent from the last year in the same period. Export of castor oil reached 30,963 tonnes for August 2012, against 35,130 tonnes for July.

The SEA's castor crop survey estimates domestic production at 1.61 million tonnes for the 2011-12 season (October-September), showing a growth of about 30 per cent over the 1.25 million tonnes recorded in 2010-11.