Guargum in demand as markets eye crude oil prices

NCDEX Guargum futures soared today as WTI Crude oil futures soared. The commodity had slipped in last few sessions as markets eyed steady output given heavy monsoon spells in leading producing regions. WTI Crude oil futures spiked more than 6% yesterday as the escalating US-Iran conflict heightened concerns over prolonged supply disruptions. This boosted NCDEX Guargum futures for October today after the counter tested two-week low yesterday. The counter currently trades up 1.12% at Rs 12906 per quintal. The open interest in the counter also edged up around 6.60% today. Guargum exports tend to rise on jump in oil prices as the commodity is heavily used in crude oil extraction as a thickening agent.

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