Guar contracts hit lower circuit on NCDEX

Guar contracts hit lower circuit in early Wednesday trade on the National Commodity & Derivatives Exchange (NCDEX) due to profit booking by active traders.

The pre-monsoon showers across the country raised this year’s output prospects of the monsoon irrigated rain-fed crop.

All contracts in both guar seed and gum fell by 4% in early trade. The guar seed contract for delivery in June hit the lower circuit to trade at Rs 7700 a quital while the contract for delivery in October also fell similarly to remain quoted at Rs 6700 a quintal.

Guar gum contract for June delivery fell by 4% to Rs 23,290 a quintal while the same for delivery in July and October also plunged similarly to trade at Rs 22,780 a quintal and Rs 20,930 a quintal respectively.

Purshotam Mundra, partner of Rajendra Prashad Purshotam Mundra, a Jodhpur based guar trader, estimates guar output at 2.75 lakh bags (1 bag = 100 kgs) this year as against 2.25 lakh bags.

According to Sanjay Periwal, another Jodhpur based trader, guar gum demand from overseas is negligible which is pulling down prices of both guar and its derivatives.