Guarseed yesterday we have seen that market has moved 4% buoyed by exporter demand to meet commitments and on lower stocks with traders amidst lack of fresh arrivals in spot markets.
Exporters are struggling to meet commitments and are buying whatever guar is available either in spot or in futures.
Most exporters have signed contracts in the September-October period for delivery in February and March.
The prices of guar have nearly trebled since then and exporters are finding it very difficult to meet commitments due to a decline in output.
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.
In Jodhpur guarseed prices gained 391.05 rupees to 13123.8 rupees per 100 kg. Market has opened at 13101 & made a low of 13101 versus the day high of 13520.
The total volume for the day was at 9380 lots and the open interest was at 25530.
Now support for the guarseed is seen at 13241 and below could see a test of 12961.
Resistance is now likely to be seen at 13660, a move above could see prices testing 13799.
Trading Ideas:
Guarseed trading range for the day is 12930-13768.
Guarseed moved 4% buoyed by exporter demand to meet commitments
Most exporters have signed contracts in the September-October period for delivery in February and March
NCDEX accredited warehouses guarseed stocks dropped by 280 tonnes to 52847 tonnes.
In Jodhpur Guarseed prices were gained by 391.05 rupees to 13123.8 rupees per 100 kg.
Courtesy: Kedia Commodities
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