India guar futures rise on arbitrage

MUMBAI, Nov 20 (Reuters) - Indian guar futures rose on Thursday as arbitrageurs bought in the futures market and sold in the physical market to benefit from the spot-futures price gap, analysts said.

Arbitrage trade looks attractive considering the widening price gap, said a large futures trader in Jodhpur.

The spot was trading at a discount of about 100 rupees to the most-active January contract, while the November contract, which expired on Thursday, was priced 30 rupees higher than the spot.

Spot prices were at 1,559 rupees per 100 kg in Bikaner, a major trading centre.

Combined open interest rose to 245,610 tonnes from 241,310 tonnes, while volume stood at 172,830 tonnes from 162,470 tonnes.

Contract Reuters code Closing price Change in %

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Guar seed

Nov NGUX8 1,588 2.31