Friday, 6 March 2015
How long Guar seed and Guar gum will remain stable in market ?
In local market guar remained stable after a regular bullish trend. In future market dropping crude oil gave a halt to rising prices to guar prices in spot and forward market. As per earlier prediction crude was suppose to go upward. Traders and exporters consider crude an important factor for demand of guar gum.
Crude is based of energy industry. Any type of movement will put an impact to input products. Guar is considered as demand driven input. After harvesting of guar crop, supply side figure balance at a level.
From July to December Guar behave as supply driven product and form January to June Guar behave as demand driven product. Guar will remain as a weak commodity up to June. After June it may behave as strong commodity with the negative data of rainfall.
During current period impact of crude prices will be seen clearly on guar prices. Any further demand of guar Korma and Churi may also affect price of gaur.
Unexpected price fall of crude oil may push guar seed prices below 3000 and guar gum prices below 7500 at current level of oil prices guar seed and guar gum will remain below 3500 and 8500 at the time of March contract realization. If crude prices drop further then it may drop below the level of 2500 and 7500.