MUMBAI (Commodity Online): Guar futures opened down at the NCDEX counter Monday due to profit booking, tracking weak spot market sentiments. Guar seed prices opened lower Monday in Rajasthan on slack demand from guar gum mills.
NCDEX guar seed November contract lost Rs two at Rs 2,616 a quintal at 10:35 am. The contract opened the day at Rs 2,630 a quintal and traded in the range of Rs 2,630 and Rs 2,615 a quintal.
December contract moved down by Re one and placed at Rs 2,661 a quintal. The volume in the November and December contracts totalled at 1,190 and 35,820 tons.
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Guar gum November futures rolled back in loss after quoting at Rs 5,401 a quintal, down Rs 30 at 10:33 am. The contract had opened higher at Rs 5,453 a quintal. December contract moved down Rs 17 at Rs 5,517 a quintal. The volume in the November and December contracts stood at 205 and 1,315 tons.
According to traders, demand from gum mills has been slack at current price levels due to low export enquiries, especially from the U.S. and Europe.
Indian Guar gave up some gains on Saturday after closing up on Friday. However, covering up of short positions by speculators at lower levels limited the losses. The December futures closed at 2662 rupees, down 0.37%.
Lower production estimates has been supporting the prices from a steep fall. According to market sources, guar seed production is expected to fall to 3.5 lakh tonnes from 8.5 lakh tonnes produced last year. Lower acreage and unfavorable weather conditions are contributing for lower production.
