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India Guar Futures Hit Lows on Higher Area

Source: Reuters
09/09/2008

Mumbai, Sept 9 - Indian guar futures hit new lows on Tuesday, falling for a fourth straight session on trade estimates of a 15 percent higher acreage in 2008/09, analysts said.

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Higher output increases supply and depresses prices.

Analysts, however, said futures may stage a pullback later in the day on short-covering.

Guar acreage is estimated to be up to 15 percent higher than the previous year's 3 million hectares, indicating higher output, said a top official with Indian Guar Gum Manufacturers Association last week.

At 11.01 a.m, near-month September futures NGUU8 on the National Commodity and Derivatives Exchange was at 1,662 rupees per 100 kg, down 0.24 percent.

The far month November contract NGUX8 was at 1,715 rupees per 100 kg, down 0.23 percent, after hitting a low of 1,707 earlier in the session.



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