Guargum futures plunge 4 per cent, hit lower limit

Guargum prices plunged 4 per cent to hit lower circuits at Rs 14,910 per quintal at the future market today after participants off-loaded positions, tracking a weak trend at domestic spot markets amidst higher production estimates.
Besides, a weak trend in global markets weighed on guargum prices.
At the National Commodity and Derivatives Exchange (NCDEX) counter, guarseed prices for delivery in August month contracts tumbled by Rs 620, or 4 per cent to hit lower circuit at Rs.14,910 per quintal, in an open interest of 11,505 lots.
In a similar fashion, far-month October contracts plunged by Rs 650, or 3.97 per cent to Rs 15,740 per quintal, with an open interest of 5,812 lots.

Marketmen attributed a steep fall of 4 per cent in guargum prices at futures trade to a weak trend at domestic spot markets amidst higher production estimates.
Further, a weak trend in overseas markets also weighed on prices, they said.