Mumbai: Guar seed futures prices on the National Commodity & Derivatives Exchange (NCDEX) may remain firm over the next few days on reports of below average monsoon forecast and expected fall in acreage in the upcoming sowing season.
NCDEX August 2009 contracts rose by nearly Rs 70 to trade at Rs 1,903 per quintal on Wednesday over past two days on lower sowing acreage in guar growing areas and lower stocks.
“There are no reports of rains in Rajasthan. Sowing has just started across Rajasthan with slow pace. Only 10-15% sowing is done till date against the normal 50-55%,” a local trader said.
Futures prices hit upper circuit on Tuesday and gained nearly 3.5% over past two days on strong market sentiments thanks to below normal monsoon forecast for season June-September 2009 and drop in the acreage under guar. “Sowing of guar, which normally takes place between May 15 and continues till Mid-June was delayed this year. Drastic fall in acreage under guar has also been witnessed across North Rajasthan,” analyst with Angel Broking said.
Met department has predicted that the monsoon in the Northwest India (which is the main guar belt) is only 81% which will affect the output of guar in the coming season, analyst said.
“A delay in monsoon will also affect the sowing and output which can push guar prices further up,” Tarun Satsangi, AVP, Bonanza Commodity said.
“Technically, guar can see a pullback in prices and it can touch trend line support of Rs 1,846 from where prices can again get into bullish momentum and prices can once again surge towards Rs 1,922 and then towards Rs 1,956 in the near term, he said. (source: FE)
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