Commodity Online MUMBAI: Monsoon rains during the June 1-July 1 period were 46% below normal. For the week ended July 1, rains were 29% below normal. This provides some support to the guar seed prices. In the morning hours prices opened with weak undertone but later on it got support on lower levels and prices finally closed slightly above the previous close.
Monsoon has become active in most parts of the countries and is proceeding towards Gujarat and Rajasthan. This is the reason that Guar seed prices are facing resistance on higher levels. It is to be learnt that arrival of rains in Rajasthan and other growing areas are likely to affect the sentiment for guar.
Reports of delayed monsoon and overall lower rains in North-West India had been providing support to the prices. Rains are critical for guar for the sowing process and the trend in the coming days would be dependent on the progress of monsoon only.
Explore Commodity Online Mobile ServicesThere are expectations of demand picking up from these levels, which can provide further support to the prices.
Moderate export demand for churi and korma has been reported.
Stability in Dollar vs Re is expected to have a beneficial impact on the export front and there are expectations that exports and domestic demand which had remained low, can pick up at the low levels.
Courtesy: Religare Commodities
