India guar dragged down by profit-taking

MUMBAI, Nov 27 (Reuters) - India's guar futures fell 4 percent on Friday before rebounding slightly on profit-taking following weakness in other commodities and apprehensions demand may not sustain at higher levels, analysts said.

At Jodhpur, Rajasthan, spot prices had gained over 23 percent since the beginning of October till Thursday on lower crop estimates and thin arrivals.

Dubai's debt woes sparked fears and triggered a broad sell-off from commodities to equities, analysts said.

"Dubai issue is the one trigger apart from that...it (guar seed) was continuously going up for last few weeks so there is some profit taking," said Chowda Reddy, analyst with JRG Wealth Management

At Jodhpur spot market in Rajasthan, the price dropped 71 rupees to 2,658 rupees per 100 kg on Friday.

Poor monsoon has damaged nearly 70 percent of standing guar crop in Rajasthan, which accounts for four-fifth of the country's guar acreage. See [ID:nBOM490466]

Open interest of guar seed January contract NGUF0 rose to 2,20,430 tonnes on Friday from 2,12,210 tonnes a day earlier.

Most Indian agricultural commodities traded lower on Friday tracking weakness across global commodities markets, rattled by debt problems in Dubai.

Following are the closing prices of guar seed <0#NGU:> in rupees per 100 kg, and guar gum futures <0#NGG:> in rupees per 100 kg, on the NCDEX.