Besides low arrival pressure in the market, prices are not showing any bullish movement as export demand is reportedly low. As per traders, farmers are not interested to sell at lower rates. Stockists are active in Haryana while millers are showing their interest for buying at lower price in Rajasthan.
At present, market is feeling the pressure of rumor that gum export would remain low until international recession gets over. It is to be learnt that current market price is very low. So, market trend is expected to be bullish in future. 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 3850/Q in Shivani, Haryana, guar seed rate is at Rs 1500/Q while in Shri Ganga Nagar market, rate quoted at Rs 1540/Q for new guarseed.
Lower export demand for guargum 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.
Some doubt still prevails regarding production figure as till now no clear report has been obtained. As per traders however, production is expected to remain nearly 80 lakh bags, which can provide some support to the prices in the medium 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
