Guar seed futures fell sharply yesterday on account of rolling over of positions from March to next months ahead of expiry of the contracts. Spot prices also declined due to subdued trading activity.

The most active April contract guar seed futures made an intraday low of 2245 levels from a high of 2285 levels and settled at 2253 levels, declining by 1.05%.

Outlook

Guar seed futures are projected to trade on a negative note during the day on account of extended profit booking

Rolling over of positions from near month to next months is likely to result into weak trend during the day

Spot market is also witnessing weak trend because of subdued trading activity

Spot price is quoting higher at Rs.2275 per quintal in Jodhpur and guar gum is trading at Rs.4600 per quintal

In 2009-10 kharif season, India’s guar seed production is estimated at 3.5 lakh tonnes against 8.5 lakh tonnes produced last year

NCDEX-accredited warehouses, stock of guar seed stood at 27,891 tonnes and guar gum at 34,728 tonnes as on March 17

The open interest increased by 2.34% to 191540 tonnes from 187150 tonnes and volume fell by 23.% to 242740 tonnes from 318140 tonnes

Courtesy: Kedia Commodities

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