Saturday, 12 August 2017

How long Guar seed and Guar Gum will perform well ?

Guar has performed very well in Month of August. It has recovered more than 20%. This recovery is still going on.  In August and September there will be no settlement in Guar contracts. Next settlement will be in October.  There will be no settlement pressure up to next two months. Investors are making positions due to news of poor crop and uneven rainfall. Crop has damaged in some area due to heavy rainfall/ flood. In Some area, it is being damaged due to poor rainfall. 

Cultivation area is already low due to poor performance e of commodity in last years. Farmers of irrigated belts has switched to cotton specially in Punjab, Haryana and Ganganagar belt.   Kharif pulses are replacing in rainfed area. Increasing prices can attract guar in reaming sowing time.  Crop condition is poor in traditional guar growing belt.


Increased figure of current year export of Guar gum is a positive factor for investment in Guar.  115 % growth is noticed in export of guar in first quarter of current financial year in comparison to same quarter of last financial year. Speculators are also positive about Guar now.  By the next week guar will cross the level of 4000/100Kg. New crop will arrive by the end of October. Recovery in guar will continue up to October with current climatic and market condition. 

Production of seed is also expected to remain poor quality this year. In that case guar gum recovery will be low from guar seed. Consumption of guar seed is also expected to increase. Once it will cross the level of 4000 then there will be some selling pressure. Once it will cross 4500 level then selling pressure will come down and buying will start it will move toward 5000 level.  Climatic condition and cultivation condition are very crucial for guar in next two months.

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