Guargum futures plunge as participants trim positions

Guargum prices tumbled by Rs 360 to Rs 8,830 per quintal in futures trading today as speculators reduced exposures amid ample stocks on persistent supplies from growing regions.
Besides, subdued domestic as well as overseas demand weighed on prices.
At the National Commodity and Derivatives Exchange, guargum for delivery in June contracts dipped by Rs 360, or 3,92 per cent, to Rs 8,830 per quintal, having an open interest of mere 362 lots.
Similarly, current month contracts dropped by Rs 260, or 2.99 per cent, to Rs 8,440 per quintal and open interest depicted in 534 lots, while April contracts were trading Rs 230, or 2.60 per cent, down at Rs 8,600 per quintal, with an open interest of 12,633 lots.

Marketmen attributed fall in guargum prices at futures trade to offloading of positions by speculators on huge stocks position on persistent supplies and low domestic and export demand.