MUMBAI (Commoditiescontrol) – Low level buying, recover in crude oil helped revival in Guarseed and Guargum prices on Thursday at the key markets across Rajasthan after recent sharp slump.
Oil prices rose third straight day on Thursday, lifted by a surprise draw on US crude inventories as well as ongoing dollar weakness which makes oil cheaper in global markets and potentially spurs demand.
Demand was bit on the better side today mainly due to increased buying by crushers and stockists with assumption of limited downside from hereon, said a trader from Bikaner.
Present level in Guarseed and Guargum is attractive and good for long term investment, he said.
However market sentiments has been badly hurt due to sharp fall in prices during the last couple of months and thus it will not easy for prices to rise sharply straight away, he noted.
There is ample Guarseed stocks in the country to meet overseas demand for Guargum, which is likely to weigh on prices in case of any sharp rise.
The demand is also unlikely to rise strongly due to financial year-end (March 31, 2018). Further the big buyers may opt to stay on the sideline until next-month as India weather is expected to come out monsoon forecast in April.
Guarseed arrivals in the country today increased to 17,000 bags (100kg each) compared with 13,000 bags on previous session.
On derivatives, Guarseed April futures gained 0.99%, or Rs 41.5 at Rs 4,222.5/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). Guargum April contract also rose by 0.92%, or Rs 82 at Rs 9,012.
(By Commoditiescontrol Bureau; +91-22-40015533)
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