The October contract of guar gum on the NCDEX hit a four-month high of 8,410 rupees per 100 kg today, on concern over crop damage in the major guar growing belt of west Rajasthan due to low rainfall. Speculators may enlarge long positions on rising concerns over crop damage resulted with deficit rainfall in guar growing district in western Rajasthan. During the week ended Aug 16, western Rajasthan received 78% below normal rainfall at 4.9 mm, the India Meteorological Department said. On Sunday, the sub-division recorded 93% below normal rains. Prices rose today also on improved export demand for the commodity from the US, where guar gum is used as a fracking agent in oil exploration.
Source: Newswire
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