NEW DELHI, (Economy India): Guar gum prices declined by Rs 9 to Rs 12,000 per quintal in futures trading on Monday, mainly due to weak demand in the spot market and increased supplies from growing regions.
On the National Commodity and Derivatives Exchange (NCDEX), guar gum contracts for September delivery fell by Rs 9, or 0.07 per cent, to Rs 12,000 per quintal. The contracts recorded trading activity in 57,290 lots.
Market participants said the weak trend in the spot market encouraged traders to reduce their holdings, putting additional pressure on futures prices.
Weak Demand Pressures Prices
Guar gum prices have been affected by slack demand from the spot market. When demand remains subdued, traders tend to remain cautious about building fresh positions, which can weigh on futures prices.
At the same time, supplies from major guar-growing regions have remained ample. Higher availability of the commodity has further contributed to the pressure on prices.
Market Outlook
Traders are expected to closely monitor demand conditions and supplies from growing areas in the coming sessions. Any improvement in spot demand could provide support to prices, while continued ample supplies may keep guar gum futures under pressure.
The September guar gum contract ended Monday’s session at Rs 12,000 per quintal, reflecting the cautious sentiment prevailing in the market.
(Economy India)
