New Delhi, March 3: Guar gum prices witnessed a downward trend on Monday, dropping by Rs 22 to settle at Rs 10,142 per quintal in futures trade. The decline is attributed to traders reducing their holdings amid sluggish demand and abundant supply in the spot markets.
At the National Commodity and Derivatives Exchange (NCDEX), guar gum contracts scheduled for delivery in April were down by Rs 22, marking a decrease of 0.22 percent. The commodity was actively traded, with volumes reaching 31,565 lots during the trading session.
Market experts noted that weakened spot market demand coupled with sufficient availability from the major guar-producing regions has exerted considerable pressure on prices. Traders appeared cautious, opting to liquidate positions, thereby reinforcing the negative market sentiment.
This reduction in guar gum futures reflects the current market dynamics, with ample supply outpacing demand, leading to softer pricing conditions in the short term.
