Stockiest liquidation continued in guarseed futures due to limited demand of guargum in international market along with supplies in domestic market. The NCDEX futures declined by 0.10 percent today.
The market sources suggested that export demand of guargum is lacking in domestic market due to sharp decline in world crude oil markets. The Light, sweet crude for March delivery, the U.S. benchmark, settled at $49.80 a barrel on The New York Mercantile Exchange due to investor concerns about excess crude supply in U.S. markets.
The prices were also pressurized by heavy stocks in local mandies. Traders estimated that around 118 lakh tonnes of stocks are available in local mandies. This can easily meet demand of guarseed in the coming 6-7 months.
The NCDEX Guarseed April futures declined by 0.10 percent today to close at Rs 3730 per quintal. The NCDEX futures added 18.71 percent indicating fresh short position by traders.
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