India guar futures fall on Rajasthan rains

India guar seed futures ended lower on Wednesday as rain entered more parts of Rajasthan and Haryana, key producers of the commodity, analysts said.

However, estimates of a 10 percent fall in acreage in ongoing sowing season limited losses, analysts said.

Guar is primarily a rain-dependent crop and good monsoon will increase output and supplies, depressing prices, analysts said.

"Southwest monsoon has further advanced into remaining parts of Punjab & Haryana and isolated parts of north Rajasthan," India Meteorological Department said on Wednesday.

Weather department data showed monsoon has reached Sriganganagar, a major producing district in Rajasthan.

Monsoon had already spread over eastern parts of Rajasthan.

Guar is a rain dependant crop.

"Rain has entered Rajasthan ...there will be some fall in prices for the next few days," said a large trader in Bikaner.

Combined open interest of guar seed futures fell to 232,690 tonnes on Wednesday from 239,430 tonnes on Tuesday, while volume rose to 268,760 tonnes from 197,380 tonnes. link...