Crude oil-linked agro commodities fall sharply, Guar, CPO lead decline

Agricultural commodities followed the path of equities today, with guar seed and gum prices posting sharp declines brought on by a signifcant bearish trend in crude oil. Crude palm oil displayed a similar sentiment, as a lot of the demand for this commodity comes from bio-fuel makers, and its price is influenced to some extent by the movement in crude oil. In fact, practically everything else, including Chana and a range of spices traded in the derivatives segment of NCDEX, was down today.

Guar gum, guar seeds, crude palm oil, and other edible oils like soy bean shed between 1.5 per cent and 4 per cent today.

Crude oil prices have a direct correlation with several agriculture commodities such as edible oils (Crude Palm Oil or CPO, Soy oil) and Guar gum.