Guargum futures hits upper circut on strong demand

Guargum prices shot up by Rs 191, hitting its upper limit to Rs 6,531 per quintal in futures trade today on speculative buying, taking cues from firm spot markets.

Marketmen said the rise in guargum futures was supported by a smart rise in guarseed prices and strong demand from toothpaste-making industries.

Besides, poor supplies of guarseed, used by guargum makers, too buoyed the trading sentiment, they said. 

At the National Commodity and Derivatives Exchange counter, guargum for December contract to be delivered at Jodhpur, climbed by Rs 191 or 3.01 per cent to Rs 6,531 per quintal, with an open interest of 3,415 lots.

January month contract also shot up by Rs 193 or 3.01 per cent to Rs 6,614 per quintal, with an open interest of 27,035 lots, while February contract zoomed by Rs 198 or 3.01 per cent to Rs 6,679 per quintal, with an open interest of 24,020 lots.