Rains in some growing areas in Rajasthan kept sentiments weak for Guar. However, as per traders, rains at this stage may not have much beneficial effect on the crop productivity, which had been adversely affected by low rains in June/July. But mandi reports indicate the sentiments to be affected by the weather in Rajasthan.
Overall, a low production expectation has been there from poor rains the growing areas in Rajasthan received this year. This is expected to provide support to the prices in the medium term.
As per reports from Indian Guar Gum Association, the production this year is seen at a 11 year low at 2.1 lakh tonnes. Exports are expected at 2 lakh tonnes and domestic demand expected at 0.50 lakh tonne.
Reports of fall in acreage in Rajasthan from low rains have been there among traders. Reports of farmers shifting to other crops have been there in the markets.
Some export demand reported from US, China and European countries.
Reports from IMD mentions that India's annual monsoon gathered momentum during the week ended July 15, with rains 6% above normal compared with a deficit of 8% the previous week.
Courtesy: Religare Commodities
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