NEW DELHI, August 30, 2024 – Guar seed prices experienced a notable increase on Friday, climbing by ₹6 to reach ₹5,299 per quintal in futures trade. This rise comes as speculators expanded their positions, driven by a robust trend in the spot market and limited supplies from key growing regions.
On the National Commodity and Derivatives Exchange (NCDEX), guar seed contracts for September delivery saw an uptick of ₹6, or 0.11%, settling at ₹5,299 per quintal. The open interest for these contracts stood at 39,110 lots, reflecting heightened trader activity and interest in the commodity.
Factors Driving the Surge in Guar Seed Prices
Market analysts attribute the rise in guar seed futures to several key factors. First and foremost, the strong demand in the spot market has encouraged speculators to widen their positions, anticipating further price increases. Additionally, the thin supply from major guar-producing regions has added upward pressure on prices, as traders look to secure stocks ahead of potential shortages.The prevailing firm trend in the spot market indicates sustained interest in guar seed, a critical component used in various industries, including oil drilling and food processing. As a result, traders have been actively participating in the futures market, driving up prices.
Outlook for Guar Seed Market
With the ongoing tight supply situation and strong demand, guar seed prices are expected to remain firm in the near term. Market participants will be closely monitoring weather conditions in the key growing belts, as any adverse developments could further impact supply and drive prices higher.
As guar seed continues to be a vital commodity in both domestic and international markets, its price movements will remain a focal point for traders and investors alike. The current trend suggests a bullish outlook, with potential for further gains if the supply constraints persist
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