BSE futures trading in guarseed, guar gum
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.