MUMBAI (Commodity Online): Sideways trend was noted for Guar as cloudy weather and possibilities of rains in few areas in Rajasthan pressurized the prices. Slight improved demand in the mandis has been noted at these low levels. Short term trend is still determined by the weather aspects

Delayed monsoon arrivals in the growing areas in North-West India have reportedly affected the sowing aspects. There are apprehensions of a fall in sowing area that could affect the production for the crop adversely this year also

Rains in coming days in growing areas in Rajasthan would be beneficial for the sowing aspects for the commodity. Being a rain-fed crop, its sowing activities would be determined after the first showers in the growing areas in Rajasthan. So the progress of the monsoon in the coming weeks would be critically observed

Demand for Guargum remained moderately good from US and China but weak demand from EU was there.

Weak demand for by-products churi and korma was there. Farmers reportedly shifting to cheaper alternatives of Cotton seed oil cake for feeding their cattle. Reports of farmers being more interested in sowing crops like moth and Moong can affect sowing area for Guar – as per traders.

Higher stock levels have been pressurizing rates for the commodity.

Courtesy: Religare Commodities

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