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India Guar Futures Lower on Higher Acreage

Source: Reuters
05/09/2008

Mumbai, Sept 5 - Indian guar futures fell at open on Friday after a trade official said India's guar crop acreage is seen about 15 percent higher in 2008/09, analysts said.

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Higher output increases supply and depresses prices.

India's guar acreage is estimated to be up to 15 percent higher from last year's 3 million hectares, indicating higher output, said a top official with Indian Guar Gum Manufacturers Association (IGGMA).

"As per our estimates, India's guar area is 10-15 percent higher than last year," Girdhari Lal Sarda, president, IGGMA, told Reuters in a telephonic interview on Thursday.

At 10:11 a.m, near-month September futures contract NGUU8 on the National Commodity and Derivatives Exchange was at 1,745 rupees per 100 kg, down 1.19 percent.

The far-month November futures contract NGUX8 ended at 1,796 rupees per 100 kg, up 1.54 percent.



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