Will Guar and Guar gum rate stable?? How will it affect Guar Gum Seed Cultivation in India ??
Tuesday, 17 February 2015
Will Guar and Guar gum rate stable?? How will it affect Guar Gum Seed Cultivation in india ??
Guar seed and gaur gum rates has improved by Rs 50 and Rs 100 in local market after improvement in position in future market. At lower level supply of seed has slow down in local market. Some stockists are also showing interest in purchasing guar seed and guar gum to lower down their average cost of stock.
They are covering or minimizing their inventory loss. In market of Jodhpur guar is available at Rs 3800 and Gum is available at 9050.
But the fear of further crush is still with guar seed and guar gum, as crude Oil is being traded below 70 USD. Once Crude will cross USD 70 then it will give a platform to Guar at demand side. Though, current improvement is a sentimental trend but it will be keep going if the rally in crude will keep going.
The trend of down fall in rate has been halted right now. Stack holders in physical market are in the position of wait and watch. In a discussion with local trader it was found that there is no any major impact on business. Even at improved rate, physical volume has not increased.
For short term guar is stable and there are low chances for further crush but for long term market will have to wait for crude price go beyond 80 USD. In current international politics there is no good news for economic growth. Major concern is coming from increasing political instability in Europe.
In coming time guar gum cultivation in India will not effect, because cotton is parallel crop to Guar in Guar Growing belt. This year there is no any major improvement in cotton. Cotton is also going down. Guar gum export is also going down.