MUMBAI (Commodity Online): With monsoon deficit widening, the concerns remain for a low production in Guar. Low rains in growing areas in Rajasthan and Haryana kept prices firm. Some export demand too provided support to the rates.
Low production estimates from low rains are regularly there. Traders expect prices to remain volatile. Lower production estimates are likely to keep trend moderately bullish from a medium term point of view.
Any rainfall activities in the growing areas can have a temporary bearish impact on the prices. Report of weak monsoon however limits this possibility. Overall fundamentals remained bullish. Good export demand too has been reported. Reports of fall in acreage in Rajasthan from low rains have been there among traders.
Trade commodities or equities from across the globe. Join Now Reports of farmers shifting to other crops have been there in the markets. Some export demand reported from US, China and European countries.
Latest 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. Reports of delayed monsoon and overall lower rains in North-West India had been providing support to the prices.
Courtesy: Religare Commodities
