Guarseed yesterday we have seen that market has moved 1.96% due to lack of fresh arrivals in the spot markets though expectations of a fall in export demand limited the gains.
Traders fear that consuming industries might find it unprofitable to use guar gum at such high prices and could switch to other alternatives as such xanthan gum and plant cellulose which are widely available.
According to the Agricultural and Processed Food Products Export Development Authority, guar gum exports increased by 75 per cent during the first half of the current fiscal to 3.47 lakh tonnes (1.98 lakh tonnes).
In terms of value, they fetched Rs 4,909 crore against Rs 1,260.64 during the same period a year ago. The complex has continued to rally despite the Forward Markets Commission that regulates futures exchanges slapping additional margins on guarseed and guar gum.
Currently, anyone taking position in the complex has to foot 60 per cent margin in cash.
Guar, a leguminous crop, is primarily grown in Rajasthan, besides Haryana, Punjab, Gujarat and Madhya Pradesh. Rajasthan accounts for 70 per cent of the crop in the country.
In Jodhpur guarseed prices gained 19 rupees to 12144.25 rupees per 100 kg. Market has opened at 12140 & made a low of 12041 versus the day high of 12450.
The total volume for the day was at 15000 lots and the open interest was at 24540.Now support for the guarseed is seen at 12124 and below could see a test of 11878.
Resistance is now likely to be seen at 12533, a move above could see prices testing 12696.
Trading Ideas:
Guarseed trading range for the day is 11878-12696.
Guarseed ended with gains due to lack of fresh arrivals in the spot markets
Fundamentals remained bullish from good exports, lower production and low stocks
NCDEX accredited warehouses guarseed stocks dropped by 71 tonnes to 53416 tonnes.
In Jodhpur Guarseed prices were gained by 19 rupees to 12144.25 rupees per 100 kg.
Courtesy: Kedia Commodities
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