Guargum rises in futures trade on short-covering

Fall is supply of guarseed supports uptrend, May guargum adds 1.3%

Guargum prices rebounded by Rs 170 to Rs 11,920 per quintal in future trading today largely supported by covering-up of short positions by speculators amid low-level buying spot markets.

At the National Commodity and Derivatives Exchange, guargum prices for June month delivery contracts rose by Rs 170 or 1.45 per cent to Rs 11,920 per quintal, with an open interest of 9,331 lots.

The May contract, which was the most active, added Rs 150 or 1.30 per cent to Rs 11,730 per quintal in an open interest of 10,859 lots.

Marketmen said besides covering-up of short positions by speculators and rising demand in spot markets, fall in supplies of guarseed, influenced guargum prices at futures trade here.