MUMBAI (Commodity Online):Guar seed futures in India expected to extend uptrend on Tuesday on limited stocks in the domestic markets amid firm overseas demand.
In NCDEX on Monday guar seed February contract rose 3.96% at Rs.10,540 100 kg after hitting a record high of Rs.10,544. Lower productions prospects than earlier estimates, overall strength in Dollar aiding exports and reports of lower stocks are likely to support the market sentiments in medium term however, according to Religare Commodities.
Anticipations of further rise in exports in coming weeks could aid the uptrend further as per traders. Expectations of tight supplies in the long run owing to lower output have led to whopping 120% rise in Guar prices since last 2 months.
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.
Exports of Guar gum from April to September 2011 stood at 2.86 lakh tn a rise of 68% compared to 1.70 lakh tn during the same period last year. In 2010-11 fiscal, Guar gum exports were almost doubled to 4.03 lakh tonnes.
According to the second advance estimates from Rajasthan farm department, Guar seed output has been revised upward from 11.36 lakh tonnes to 12.09 lakh tonnes and area covered has been revised upward at 30.9 lakh ha against 29 lakh hectares in the first advance estimates.
