Traders shift from banned items to guar seed

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Saturday , May 10, 2008 at 0047 hrs Prices and volumes of guard seed on NCDEX platform rose sharply on Friday after traders and speculators switched over to guar seed from banned commodities.

“Traders and speculators are active in guar seed after the government suspended futures trade in four agriculture commodities,” Karvy Comtrade analyst Chowda Reddy told PTI.

He said traders are common in chana and guar seed and in the absence of chana, volumes have shifted to guar seed.

At 1600 hours, prices of May delivery of guar seed increased by 1.47% to Rs 1,861 per tonne, June contract increased by 1.71% to Rs 1,901 per tonne while July contract surged by 1.67% to 1,939 per tonne.

The spot prices of guar seed is trading firm at Rs 1,845.90 per tonne at Bikaner and at Rs 1,860.35 per tonne at Jodhpur centre. According to NCDEX data, volumes in the near month contracts increased over 50%, while the far month July contract saw cent per cent rise after the government banned four agricultural items chana, soya oil, potato and rubber on May 7 with immediate effect. Guar seed volumes of May contract increased by 57% to 32,470, June contract rose 55% to 1,42,420 and July contract surged to 53,950, it said. Prices are likely to remain volatile due to active participation of speculators, the analyst said.