MUMBAI (Commodity Online): Guar seed and guar gum contracts at National Commodity and Derivatives Exchange of India (NCDEX) extended its bullish trend and hit the upper circuit in early morning trade on Saturday.
NCDEX Guar gum January contract has gained 21.67% till Friday at Rs 31783 per 5 MT while Guar Seed January contract rose 21.7% to Rs 9604 per 10 MT till Friday despite market regulator, Forward Market Commission's moves to curb speculation in the commodity.
Forward Market Commission on Friday, January 14, 2012 has imposed additional special cash margin of 10% to be collected in cash. Further the already imposed non cash margin of 15% will be converted to cash margin. This will be effective from January 16, 2012.
Earlier this week, the market regulator had directed the exchanges to cut position limit in Guar seed by 20% for brokers and clients and in Guar gum by 40% for brokers.
On Saturday morning trade, guar complex has crossed the 4% upper limit with guar gum January at Rs 33055 per 5 MT, February contract at Rs 33563, while Guar seed Jan was locked at Rs 9989 per 10 MT February contract at 10138, March 13262, and July 10406.
The guar complex is breaking all resistance levels and marching ahead, giving no clue to investors and traders, analysts said.
