BSE fu­tures trad­ing in guarseed, guar gum

The Hindu Business Line - - COMMODITY WISE -

BSE, the lat­est en­trant in the com­mod­ity de­riv­a­tives trad­ing space, has launched fu­tures trad­ing in guarseed and guar gum. Cap­i­tal and com­mod­ity mar­ket reg­u­la­tor SEBI last month al­lowed the ex­change to launch fu­tures trad­ing in gold mini, guarseed and guar gum fu­tures con­tracts. Trad­ing in guarseed and guar gum started on Wed­nes­day with a lot size of 10 tonnes. The ex­change will have con­tracts ex­pir­ing from Fe­bru­ary to De­cem­ber in both the com­modi­ties.

Largely ex­port-ori­ented, guar gum and guarseed prices are driven by global fac­tors. Guar gum prices are linked to crude-oil prices as the gum is largely used in oil-well drilling and other in­dus­tries such as cloth and paper man­u­fac­ture, ex­plo­sives, and ore flota­tion. Guar gum is also used as a thick­en­ing and bind­ing agent in the food, tex­tile, paper, phar­ma­ceu­ti­cal and oil in­dus­tries.

It has to be seen whether the BSE can at­tract some trad­ing vol­umes from the well-es­tab­lished agri­cul­ture com­mod­ity ex­change, NCDEX.

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