Suryaa Business Desk: Surya Commodity Desk, Mumbai: Guar seed futures prices on the National Commodity and Derivatives Exchange (NCDEX), the domestic agricultural products derivatives market... Surya Commodity Desk, Mumbai: Guar seed futures prices suffered significant losses on the National Commodity and Derivatives Exchange (NCDEX), the domestic agricultural produce derivatives market. Traders tended to reduce their positions as new crop supplies flowed from major producing areas to spot markets, while buying support from the gum industry and exporters slowed.
The main reasons for the decline in prices are: Increased supply to spot markets: The arrival of guar seed to local mandis has increased significantly as harvesting activity has intensified in key guar producing states like Rajasthan, Haryana and Gujarat. Slowdown in export demand: Less than expected industrial purchases have added pressure on prices as guar gum consumption in the international crude oil drilling segment remained somewhat stagnant. Liquidation pressure: NCDEX futures contracts are trading in the red as traders are taking profits in short contracts and liquidating long positions due to oversupply.
Agricultural market experts are analyzing that guar seed prices are likely to move within a limited range till the current market supply conditions stabilize.