Spot Guar Gum, Seed Remain Bearish As Futures Contracts Pared Early Gains

NEW DELHI (Commodities control) Guar gum and seed contracts at NCDEX pared early gains as market sentiments turned to bearish. Spot trade also turned to weak as it followed futures market. The market was still uncertain regarding improvement in guar gum export demand.

Gaur complex relied on hope for export demand from crude oil sector but Biden administration’s actions indicated increasing risks of corona crisis. The US administration planned to put restrictions on those non US citizens for entry who have recently visited Africa. Another report suggested that corona vaccine may not be effective for new corona mutant. Crude oil remained in green zone in international market. But corona worries caused for uncertainty regarding gum export for crude oil sector.

Guar gum and seed contracts opened with gains in NCDEX. But selling pressure from investors dragged the contracts in negative zone. Therefore, guar gum and seed spot market in Rajasthan, Gujarat and Haryana turned to negative. Guar seed prices lost in majority of spot markets. Guar gum millers have reduced buying prices by Rs. 25 to Rs. 3850-3900 per quintal in Jodhpur. Guar seed (Loose) slipped Rs. 20 to Rs. 3750-3760 per quintal in Jodhpur mandi. However, gum and gum powder remained stable with bearish tone in Jodhpur. Guar seed fell down up to Rs. 50 per quintal in Rajkot and Sriganganagar during auctioned trading. There was no arrival and trade in Adampur of Haryana. However, seed prices gained Rs. 50 in Bikaner as few lots of higher quality seeds were traded higher.