Some buying for gua rgum has been reported from China -as per traders. As per traders, if purchasing from China remains, it can provide support to the prices.
Arrival pressure is reducing day by day. Overall arrivals are low in all producing mandis. At present, around 50000 bags arrival is observed while normally, it should have been ~1 lakh bags. Stockists and miller's buying is reportedly good as they see current rate as very low. However, market is expected to lift up gradually as demand is not so enough to move the price up drastically.
As per traders, production is expected to remain nearly 80 lakh bags. Offer for guar gum is being seen at Rs 3950/Q in Shivani, Haryana, guar seed rate is at Rs 1550/Q while in Shri Ganganagar market, rate quoted at Rs 1570/Q for new guarseed.
Lower export demand for guar gum due to the turmoil in the global markets however kept preventing prices from moving up. Absence of export demand can pressurize prices in the short term.
Price Drivers Bullish Improved demand and lower arrivals at the lower levels reported.
Lower production anticipated in the mandis.
Reports of lower productivity in most areas in Haryana and Rajasthan.
Reports of crop damage from some areas in Rajasthan and Haryana.
Bearish Lack of significant export demand in Guargum.
Turmoil in the International markets is causing financial crisis and this is keeping export demand low.
Courtesy: Religare Commodities
