Tuesday, 4 November 2014
Will Guar seed and Guar Gum prices, keep falling in year ? What will be the bottom ??
I am predicting split will be at a level of Rs 110-115 level. No one is willing to stock to guar seed everyone is bypassing to next channel. Market is moving toward extreme correction like Gold and Crude oil. Guar has rose from a level of 2100 to 30,000 then stayed on 5000 not it will correct toward 2100. This is reality that there will be correction within this year and then again it will maintain new level.
In future there will be no problem in supply side if there is no adverse climatic condition. Rain-fed farmer will have to grow it and he will keep growing.
Right now there is no election, there is no too much inflation, and there is no too much rise of demand in energy market. Unfortunately, greedy traders have stoked the material in Houston so Oil and Gas companies are not in hurry to buy the commodity. Those companies know that ware house charges of Houston will settle down the price of Guar gum powder, stocked there.
Indian manufacturer can stop it if they take some positive decision and some professional approach. Guar Gum has become like a vegetable in vegetable market in Houston for Oil and Natural Gas Companies. The buyer will come and buy it at any time.