Friday, 30 December 2016
Guar seed & Guar gum prices post demonetization
First stage of demonetization has almost completed. Supply chain of most of commodities have disrupted badly and prices dropped down. Guar prices could remain stable at lower level and no major fall in prices have noticed.
Guar gum split & Guar gum powder are exportable commodity and major portion is exported to USA. There was also some uncertainty in USA about coming president but now it is clear after the USA presidential election. Demand of guar gum will remain positive during Trump era. Trump will support fracking activity and keep USA self-sufficient in oil production. New contract of guar export will be signed and shale oil will remain competitive to gulf oil.
This year guar production was lower than last year and demand of guar seed will rise with growing export. Most of guar seed which is stocked in ware house was stocked at higher than 4500/100Kg level. Stockist will minimize the loss and they will release guar slowly and slowly toward 4500/100Kg level. We have seen a lot of up and down in guar prices but it is still trying to remain higher than 3200/100Kg level. Guar gum prices are also under pressure but it is maintaining the level higher than INR 6000/100Kg.
Try to avoid selling at lower level, prices of guar seed and guar gum will not go below INR 3200/100 kg and INR 6000/100Kg. Major peak arrival has stopped now. Supply of gaur seed will be very tight in market. It will remain tight up to next harvesting in October-2017. Demand of guar korma is also good and It is giving support to guar prices at lower level. Currently prices are under advance selling pressure but it will be hard to sell at lower prices for stockist and traders.
Prices of other commodities have fallen but guar is firm at its lower level. Crude oil prices are also growing and it is above USD 50/barrel. Export of guar gum is also expected to rise in coming months. Guar will also benefit from online transactions. Scenario of guar will change in post Makar Sankranti period. Prices will rise with short supply.