MUMBAI (Commodity Online): Guar gum futures settled higher Thursday on short covering by the traders on the back of firm demand from the domestic markets. Guar Seed futures also rose today due to thin supply from the fresh crop.
At NCDEX Guar gum October contract closed at Rs.13895 per quintal, higher by 1.40 per cent against the previous close. In the early sessions the contract traded at a range of Rs.13610-14115 per quintal and open interest of the contract stood at 38270 lots.
Forecast of delay in withdrawal of South west monsoon and thus extended rainfall may delay the harvesting of early sown Guar crop in Haryana and northern parts of Rajasthan. However, these rains may prove beneficial for the late sown Guar crop.
According to Agriculture and Processed Food Products Export Development Authority, Indian Guar gum exports for the period April- March 2010-11 surged by 84% and stood at 4,03,007 tonnes as compared to 2,18,473 tonnes during the last year.
In the FY 2011-12 export demand of Guargum continued to remain higher with exports of 30,816 tonnes in the month of April 2011, up 51 % as compared with 20,376 tonnes in 2010-11 season.
