Guar Seed, Gum Future Surges Due Dry Spell

Mumbai: The dry spell for the last eight days in central and western parts of the country has sent guarseed and guar gum futures surging on NCDEX. The dry weather is hoped to continue for another four to five days. Guarseed for August delivery on NCDEX jumped over 5 per cent to Rs 1,735 per quintal on July 16, from Rs 1,648 on July 9. September deliveries have climbed 5.5 per cent to Rs 1,767 per quintal on July 16 from Rs 1,676 on July 9. However, on July 18, traders preferred to book profits, which resulted in August contracts dropping Rs 9 per quintal to Rs 1,726, while September contracts lost by Rs 12 a quintal to Rs 1,755. Futures of guar gum - a by-product also moved in tandem. Guar gum for August delivery increased 4.30 per cent to Rs 4,432 per quintal from Rs 4,249 on July 9. September deliveries were marked up by 4.72 per cent to Rs 4,520 per quintal from Rs 4,316 on July 9. October contracts remained higher at Rs 4,600 per quintal on July 17. Profit-booking also pulled down guar gum futures by Rs 38 to Rs 4,396 per quintal on July 18, while September deliveries were down by Rs 23 to Rs 4,497. The country's guarseed exports this year are hoped to rise by 47 per cent to 2.20 lakh tonnes. India exports guar gum to the petroleum industry in the US and also to the oil fields in West Asia.