MUMBAI (Commodity Online): Guar seed futures extended uptrend this week on the back of limited arrivals in the domestic markets along with firm spot demand. Falling stocks in the physical markets amid firm export demand also supported the futures to trade higher.
In NCDEX guar seed futures on Friday expected to continue uptrend on firm fundamentals. However, due to high volatility, traded volumes across Guar complex has declined significantly. Although, prices had witnessed correction in the previous weeks due to stringent steps taken by the FMC, prices continued to remain firm.
NCDEX postpones launch of August 2012 contract until further notice. In the month of January, FMC has taken various measures to curb the rising prices viz- imposition of special margin, cut in position limit, Further to curb volatility, FMC on 11.1.12 took another measure to curb the rising price of Guar seed and gum viz- Cut in position limits w.e.f. FMC on 11. 1.2012 directed the exchanges to cut position limit in Guar seed by 20% for brokers and clients and in Guar gum by 40% for brokers. Position limit in Guar gum for clients remain unchanged.
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 12.09 lakh tonnes (Second advance Estimates).
Exports of Guar gum from Apr to Oct 2011 stood at 3.48 lakh tn a rise of 75.8% compared to 1.98 lakh tn during a year ago. U.S is regularly buying gum for its daily requirement in oil drilling process.
