AHMEDABAD (Commodity Online): Guar Gum October contract has gained 1.17% and was seen trading at Rs.14162, a jump of Rs.164, in afternoon trade.
“The markets have been range bound, and new arrivals are expected by December” said Faiyaz Hudani, agri-analyst with Kotak Commodities.
As per reports, the guar seed area cultivated in Rajasthan has fallen to 2.758 million hectares as on Aug 30 vs 3 million hectares same period last year. Guar seed is expected pick up in exports at the lower levels which could support the prices in coming weeks as traders expect medium term bullishness for the commodity rates.
But, short term trend is expected to remain very volatile for guar seed, a Religare report added.
Rains in Rajasthan over last few days too created a bearish impact as that would favor the sowing of the new guar seed crop.
Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices.
