Price Discovery Mechanism of Castor Oil Seeds

Abstract

This study focused on the price discovery mechanism in castor oil seeds amid the period 2016-2018.  The data were taken from day to day information on spot and future market prices in NCDEX and MCX site. The Future market exists at the motivation driving price risk management. The threat of price discovery of an asset can be managed by the system of hedging.   It is the second most vital role of the future market. The supply of castor seed and its subordinates is exceedingly fluctuating. Any change in the generation design in any of conveying nations prompts a modification in Castor oil seeds futures are depended upon to exchange a range headed measurements throughout the day.  The main findings of this study focused on the spot future price in castor oil seeds. The future price expects a big role in price discovery.  Overall assessmentof castor seed is delicate for the close term as the new yield supply probably going to augment in coming days.