Commodity Online MUMBAI: Prices are witnessing resistance on higher levels as monsoon has become active in most parts of the countries and is proceeding towards Gujarat and Rajasthan. This is the reason that Guarseed 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. Arrival of monsoon by 1st week of July in Rajasthan would be critical from the production point of view.
Trade sitting at the comfort of home. Start with a mere 50$There 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
