Guargum recovers on short covering

NEW DELHI: Guargum prices rose by Rs 190 to Rs 13,900 per quitnal in the futures trade today on low levels buying by traders in line with firm spot market cues.

Marketmen said thin supply of guarseed from growing regions against pick up in demand at lower levels in spot markets mainly led an upsurge in guargum futures prices.

Strong demand from exporters too encouraged traders to built up new positions, they said.

At the National Commodity and Derivatives Exchange, guargum for far January contract recovered by Rs 190 or 1.39 per cent to Rs 13,900 per quintal, with an open interest of 177 lots.

Most active November contract rose by Rs 180, or 1.28 per cent, to Rs 14,220 per quintal, having an open interest of 2,947 lots.