Mumbai - Guar seed recovered from yesterday's losses and traded up marginally on short covering by traders while guar gum futures remained weaker with more but small losses during early hours of session on the National Commodity and Derivatives Exchange [NCDEX] Thursday.

The uncertainty over monsoon rains in guar-producing areas is keeping the futures volatile. The trend in guar during the next three months will now depend on the movement of monsoon. However, speculators believe that prices will not fall sharply as monsoon has been weak this season in guar-producing areas.

Spot guar was quoted higher at major markets across Rajasthan Wednesday as stockists have resumed buying expecting further rise in guar prices due to weakness in monsoon. Markets in Haryana remained closed due to strike against the entry tax in the State.

Guar sowing is in progress in Haryana as well as Shriganganagar and Hanumangarh districts in Rajasthan. Sowing has also started at Jodhpur, Churu, Jhunjhunu and Sikar region in western Rajasthan.

As on July 15, demat stock of guar seed in NCDEX-monitored warehouse was 55,161 tonnes whereas 803 tonnes were in process. Demat stocks of guar gum were at 4,903 tonnes while 279 tonne were in process. MCX-accredited warehouses were stacking up 60 tonnes of guar seed as on July 15.

NCDEX July guar seed opened up Rs 12 at Rs 1,938/quintal, and witnessed movement between Rs 1,929 and Rs 1,939/quintal. At 11.06 am IST, the contract traded up Rs three at Rs 1,929/quintal with a volume 1100 tonnes.

Benchmark September guar seed opened up Rs four at Rs 2,027/quintal, and tossed in the range of Rs 2,025 and Rs 2,040/quintal. At 11.06 am IST, the contract traded up Rs three at Rs 2,026/quintal with a volume of 56,450 tonnes.

NCDEX July guar gum opened down Re one at Rs 4,815/quintal, and saw movement between Rs 4,800 and Rs 4,815/quintal. At 11.08 am IST, the contract traded down Rs 16 at Rs 4,800/quintal with a volume of 65 tonnes.

Benchmark September guar gum opened up Rs 17 at Rs 5,050/quintal, and saw movement between Rs 5,032 and Rs 5,070/quintal. At 11.09 am IST, the contract traded steady Rs 5,033/quintal with a volume of 350 tonnes.