Guar gum prices experienced a decline on Friday, with futures dropping by Rs 13 to Rs 10,501 per five quintals. This decrease has been attributed to traders offloading their holdings, influenced by a prevailing weak trend in the spot market.

The drop was recorded on the National Commodity and Derivatives Exchange (NCDEX), where guar gum for June delivery fell by Rs 13, or 0.12%, to Rs 10,501 per five quintals across 16,985 lots.

Market analysts point to a slack in demand within the spot market as a significant factor contributing to the price decline. Additionally, ample supplies from growing regions have further pressured guar gum prices.

The guar gum market has been notably sensitive to fluctuations in demand and supply dynamics. The current surplus in supply coupled with reduced buying interest has led to this recent price correction. Traders and investors will be closely monitoring the market for any signs of demand resurgence or further supply adjustments that could impact future pricing.

About Guar Gum:
Guar gum is derived from guar beans and is extensively used in the food, textile, paper, and oil industries, particularly in hydraulic fracturing. India’s climate and soil conditions are well-suited for guar bean cultivation, making it a leading producer and exporter of guar gum.

Outlook:
The future trajectory of guar gum prices will largely depend on the recovery in demand and any potential changes in supply levels. Stakeholders are advised to stay informed about market trends and geopolitical developments that could influence commodity prices.

Contact Information:
For further details, please contact the National Commodity and Derivatives Exchange or local market analysts.