National Commodity & Derivatives Exchange (NCDEX), the leading commodity exchange in India is the preferred trading platform for all stakeholders in the Guar value chain. The open interest of guar seed futures were 21,849 MT on October 9, 2013. The contract has now gained the confidence of the market participants witnessing an open interest of 46,790 MT as on October 9, 2014; showing an increase of 114% y-o-y. The average daily trade quantity (ADTQ) stood at 53,000 MT in September 2014.
The guar contracts traded at NCDEX are useful for all the value chain participants of Guar. The new guar seed 10 MT contract has helped the hedgers who intend to take delivery to rationalize the transportation and labour costs as compared to 1MT contract.
The small investors may undertake spread trading in guar seed 2MT using day limit order functionality which was launched for trading from October 1, 2014.
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