Guargum futures recover on bargain buying

After persistent fall, guargum prices recovered by Rs 70 to Rs 7,920 per quintal in futures trading today as speculators created fresh posititons amidst emergence of buying at prevailing levels at the physical markets.
Further, restriced arrivals of guarseed and rising demand in physical markets, too influenced trading sentiments.
Marketmen said fresh positions built-up by speculators at current levels and a better trend at the physical markets on the back of bargain buying, supported the recovery in guargum prices at futures trade here.
Prices had been falling in the past several sessions after touching the Rs 10,000 mark on mounting inventoreis and sluggish export demand.

At the National Commodity and Derivatives Exchange, guargum for delivery in October month contracts was trading higher by Rs 70, or 0.89 per cent to Rs 7,920 per quintal, with an open interest of 15,957 lots.
On similar lines, commodity for delivery in November contracts rose by Rs 70, or 0.88 per cent to Rs 8,050 per quintal, having an open interest of 8,050 lots.