Guargum surges 2.56% on strong demand

Prices also rise due to fall in production as farmers switch over to other crops

 

Guargum prices shot up by Rs 220 to Rs 8,800 per quintal in futures trading today following speculative buying by participants, supported by a firming trend at the physical market.

At the National Commodity and Derivative Exchange, guargum for delivery in far-month January next year contracts edged up by Rs 220, or 2.56 per cent, to Rs 8,800 per quintal, with an open interest of 1,248 lots.

The November contract advanced by Rs 190, or 2.29 per cent to Rs 8,500 per quintal, in an open interest of 24,662 lots.

Marketmen attributed rise in guargum prices to fall in production as farmers switched over to other crops and surge in export demand.