Guar gum futures extend weakness on rising stockpiles

Guar gum prices declined further by Rs 108 to Rs 6,717 per quintal in futures trading today as speculators engaged in cutting down their positions, triggered by rising stockpiles amid tepid demand in the spot markets.
Marketmen attributed continued fall in guar gum prices at futures market was mostly due to soaring stocks following sustained inflow of arrivals of guar seed from growing regions and muted demand from gum makers in spot markets.
In futures trading at the National Commodity and Derivative Exchange, guar gum to be delivered in July moved down by Rs 108 or 1.58 per cent to Rs 6,717 per quintal, with an open interest of 12,000.

Guar gum, for most-traded October contracts also dipped by Rs 96 or 1.34 per cent to Rs 7,093 per quintal, in an open interest of 36,850 lots.