MUMBAI (Commodity Online): Guar gum futures surged today on weak arrivals from the fresh crop along with hopes on export demand may pickup in the coming days.
At NCDEX Guar gum September contract is trading at Rs.14065 per quintal, higher by Rs.98 or 0.70% at 11.18 AM against the previous close.
In the early session the contract traded at a high of Rs.14145 per quintal and open interest of the contract is 19390 lots as of now. Guargum January contract rose by Rs.393 to Rs.13493 (up by 3%) in the morning session.
Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices. The trend is likely to remain volatile in short term depending on the demand and arrivals in the mandis.
Special margin on all running contracts on buy side on Guar Seed and Guar gum is applicable from 28th July 2011. Special margin of 10 percent along with 5% cash margin will be applicable on Guar gum while Guar seed special margin on long positions will account to 10 percent.
