MUMBAI (Commodity Online): The bullish trend in Guarseed continued unabated on lower output concerns. Domestic demand remained good but the exports are yet to pick up. Lack of significant export demand is however pressurizing rates
Prospects of a fall in production had been keeping prices firm. The arrivals of the new crop are likely to take place over the next few weeks. This can have some bearish impact on the rates.
Even though production this year is expected to be low, the higher carryover stock from last year (due to low exports previous year) can nullify the low production aspects. Reports indicate however that stockists would be unwilling to sell at lower levels.
Trading platform that even a 5 year old can trade. Join now Export queries are likely to rise in coming weeks but demand from EU would depend on the quality aspects of guargum. In 2007, the exports had suffered due to some quality issues raised by the EU. Increased demand for churi and korma reported.
Overall, a low production expectation has been there from poor rains the growing areas in Rajasthan and Haryana received this year. 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. Reports of farmers shifting to other crops are there in the markets.
Courtesy: Religare Commodities
