Guarseed future sees down trend

Mumbai: The downward trend of Guarseed futures remained this week and closed with a loss of Rs 81 to Rs 1,687 per quintal on June 15. Being a kharif crop, traders look for the onset of monsoon over Rajasthan the largest Guarseed producing State for deciding on the futures price trend. Guarseed futures on NCDEX turned weak after the Indian Meteorological Department (IMD) expressed satisfaction over monsoon advancement. Guarseed opened at Rs 1,779 per quintal and declined to Rs 1,768 as sentiments turned bearish over IMD announcement. The turnover of guarseed futures on NCDEX during the week was Rs 1,660 crore.

Rajasthan accounts for 70 per cent of India's total production of about 5-7 lakh tonnes of guarseed per annum. Guar requires 8-15 inch of rain in 3-4 spells during the growing period and is harvested in October-November. Splitting guarseeds produces guar gum and guar powder, which are used in industries such as oil exploration, textiles and dyeing industries. Maize futures, which was trading flat at Rs 760 during the week is poised to move up in coming days as output is estimated to decline sharply, coupled with increasing demand from poultry and starch manufacturers.From a low of Rs 741 per quintal in May, July futures touched Rs 782 on June 6 and closed lower at Rs 758 per quintal on June 15. During 2006-07, India's maize production is pegged at 11 million tonnes (mt) against last year's production of 14.5 mt.