NCDEX terminates all guar futures contracts

NCDEX has terminated all existing futures contracts of guar seed and guar gum.

Written by Agencies | New Delhi | Published: March 28, 2012 11:01:16 pm

In view of sharp rise in guar future prices on speculation,leading agri-commodity exchange NCDEX has terminated all existing futures contracts of guar seed and guar gum.

The decision comes a week after regulator Forward Markets Commission (FMC) banned traders taking fresh positions in the future contracts of guar seed and gaur gum on the NCDEX platform.

“All futures contracts in guar gum and guar seed currently being traded on the exchange are closed out,” the NCDEX said in a circular dated March 27.

According to the circular,sellers intending to give delivery will be allowed to do so and the delivery intentions so received will be allocated to buyers as per normal process.

The exchange said that the delivery settlement will be made as per the revised settlement calendar,which will be communicated to the brokers.

The oustanding positions on March 27 have been closed out at the closing price of yesterday.

According to the exchange data,guar gum prices stood at Rs 92,090 per quintal on March 22,as against Rs 42,019 per quintal on February 1 despite negligible participation.

However,prices on March 23 fell to Rs 71,970 per quintal after FMC intervention.

Due to strong export demand,India’s guar gum exports is estimated to double to 4.5 lakh tonnes in the current fiscal from the last two years,according to industry data.

About 95 per cent of domestic guar gum production is exported to the US,China and Middle East.

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