MUMBAI (Commodity Online): Guar Seed and guar gum futures rose Tuesday on firm export demand amid thin supply in the domestic markets.
In NCDEX guar seed January contract hits upper circuit in the morning session at Rs.8536 per quintal and guar gum January contract at Rs. 28253 against the previous close.
FMC issued show cause notice to 5 brokers in Rajasthan and sought additional information from 50 others following a preliminary investigation, which found irregularities in trade in guar gum and guar seed futures trade.
In addition to this FMC is mulling a last resort to cool Guargum and Guar seed prices through introduction of “trade to trade” for the first time in commodities derivatives market.
After harvesting a record 15 lakh tonnes of Guar crop in Rajasthan in 2010-11season (Oct 10- Sep 11), output in the current season has declined to around 11 lakh tonnes.
Despite higher production prices had touched record levels of Rs 4770 per qtl in2010-11 on the back of robust exports which doubled from 2.1 lakh tonnes to 4.03 lakh tonnes in 2010-11.
Thus, with lower carryover stocks and drop in output, the supplies would not be sufficient in the long run if Guar gum export trend continue to remain the same as last year, thus supporting the upside rally in the longer term.
