Weak demand of Agricultural commodities: Fall in Futures trade

Most of the agricultural commodities were trading in green when the market opened on Monday. It opened on a positive note following US-China discussion on trade deal and Boris Johnson’s win in UK which signifies an open path for Brexit.

To name a few, Castor seeds, Cotton, Mustard seeds, Soybean and Refined Soybean oil were in up while, Coriander, Cottonseed, Guar Gum, Guar seed and Jeera were trading down.

Nevertheless, Guar seed on Monday fell by Rs 28 to Rs 3,890 per quintal and the price of Guar Gum declined by Rs 59 to Rs 7,050 per five quintal in Futures Market as traders reduced their holdings in line with weak market trend and the demand went lower due to the increasing supplies from its growing regions.

As per the National Commodities and Derivatives Exchange, contracts for Guar seed for delivery in December fell by Rs 28 or 0.71 per cent to Rs 3,890 per 10 quintal with an open interest of 10,470 lots.  Similarly, the contracts for its delivery in January shed Rs 28 or 0.7 per cent, to Rs 3,944 per 10 quintal with an open interest of 82,440 lots.