Guarseed north-bound

COMMODITY SPIKES

A arbitrage of Rs 100 between the spot and futures market led to stockists not releasing guarseed in the physical market. They expect the prices to further go up, in case of poor monsoon during the next crop season. This in turn resulted in the prices of guarseed moving northward in the physical market.

Presently, guarseed price in the spot market in Bikaner is traded at Rs 1,800 while the near month delivery in MCX is quoting at Rs 1872.50.

"The production of guarseed during the season just passed-by is estimated at 80-85 lakh tonne compared with 50-55 lakh tonne in the previous season. Therefore, there is hardly any room for the prices to go up on fundamentals," said a Bikaner-based trader.

Guarseed depends solely on monsoon, and any good or bad climatic news may change the fortune of this cattlefeed overnight. But, no fundamentals support the price rise as of now, the trader said.