Guargum futures up on firm spot markets, strong export demand

NEW DELHI: Guargum prices strengthened by Rs 100 to Rs 8,680 per quintal in futures trading today largely on frantic buying by bull operators, guided by firm physical and overseas sentiments.

According to marketmen, heavy buying by participants, directed by emerging spot markets where prices remained in keen demand due to tight supplies of guarseed coupled with heavy demand from consuming industries.

Hike in export demand also influenced the trading sentiments, they added.

Guar gum is used as a thickening and binding agent in the food, textile, paper, pharmaceutical and oil industries.

At the National Commodity and Derivatives Exchange counter, guargum prices for second contract May month delivery surged by Rs 100, or 1.17 per cent to Rs 8,680 per quintal, with an open interest of 5,758 lots.

Current April month contract also remained the fancy of traders, rose by Rs 90, or 1.07 per cent to Rs 8,520 per quintal, having an open interest of 9,614 lots.