Guarseed futures have encountered some selling at higher levels in the wake of possibility of strong production in the current year. The future prices of NCDEX September contract have shaved off almost Rs 50 per quintal in last two days.
The spot market players suggested that guarseed production in the current year is expected to be around 85-90 lakh bags (1 bag = 100 kgs) against 33 lakh bags reported in the last year. This was mainly on the account of strong sowing in Rajasthan and Haryana.
Therefore, NCDEX September future contract has pared almost Rs 50 per quintal in last two days and were trading at Rs 2112 per quintal today.