Guargum futures plunge 4 per cent, hit lower limit

NEW DELHI: Guargum prices plunged 4 per cent to hit lower circuits at Rs 14,910 per quintal at the future market today after participants off-loaded positions, tracking a weak trend at domestic spot markets amidst higher production estimates.

Besides, a weak trend in global markets weighed on guargum prices.

At the National Commodity and Derivatives Exchange ( NCDEX) counter, guarseed prices for delivery in August month contracts tumbled by Rs 620, or 4 per cent to hit lower circuit at Rs.14,910 per quintal, in an open interest of 11,505 lots.

In a similar fashion, far-month October contracts plunged by Rs 650, or 3.97 per cent to Rs 15,740 per quintal, with an open interest of 5,812 lots.

Marketmen attributed a steep fall of 4 per cent in guargum prices at futures trade to a weak trend at domestic spot markets amidst higher production estimates.

Further, a weak trend in overseas markets also weighed on prices, they said.