Demand of Guar gum is expected rise in next year .

This year Guar seed prices are rising slowly and slowly. It has crossed the level of Rs 4000/100 Kg. As per global energy organizations crude oil production is expected to increase in coming year 2018. Oil production of USA is going to cross the level of 10 Million Barrel Per day in 2018. With increasing crude oil prices new drilling activities will start in USA. Demand of drilling chemicals will increase. Currently crude oil prices are above USD 62 / Barrel.
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During this month prices of Guar seed are moving around 3800-3900/ 100 Kg. This is last phase of peak arrival time of Guar seed in local markets in Guar seed growing area. Supply of guar seed from farmers to market will come down by the end of December. New stock has almost settled either with traders / processor or farmers. By this time if farmers has not sold his production then he will wait for 5-6 months.

Next 3-4 months are very important for guar seed.  As per market information , total production of guar in this year is expected around 70,00,000-75,00,000 Bags ( 100 kg each). This figure is much lower than previous years. In next three four months prices of guar seed is expected to cross the level of Rs 4500 / 100 Kg. 

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As per inputs from markets and other stack holders current demand of guar gum is low. If we consider all facts then we find that Guar seed will god return in coming months. In international market Crude oil prices are also improving slowly and slowly.

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