Guar Gum price gains more than 5% on NCDEX to hit 7-month high; what's driving rally?

Guar Gum Price, Gaur Seed Price: Guar Gum surged more than 5 per cent to emerge as the top gainer on National Commodity and Derivatives Exchange (NCDEX). At 3:55 PM, Guar Gum December Futures quoted Rs 13,017 per 10 quintals to hit 7-month high.   

Guar Seed prices also increased by Rs 186 to Rs 6,029 per 10 quintals in futures to trade at 6-month high after speculators widened their positions following a firm trend in the spot market.

According to marketmen, raising of bets by speculators, tracking a firm trend in the spot market and thin supplies from growing belts mainly led to the rise in Guar Seed prices.

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Kanhailal Chadak, Guar Trader, said that the rally in the price of Guar Seed and Guar Gum is due to increase in seasonal demand and less production than estimated.

Guar Seed’s 52- week range is Rs 4517 per quintal to Rs 6725 per quintal. Today, Guar Seed opened at Rs 6,267 per quintal. In a year, Guar Seed has declined 4.07 per cent. In a week, Guar Seed has surged 17 per cent and 27 per cent in a month. 

On Friday, Guar Seed price had crossed Rs 6,000 per quintal on NCDEX. Guar Gum and Guar Seed witnessed an upper circuit of 6 per cent in NCDEX futures. Guar Seed rose by 10 per cent and guar gum futures rose by 15 per cent in a week.

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