Guar guar gum prices slipped due to profit booking at upper level .

January is great month for guar and guar gum both. Guar / guar gum prices are moving in upward direction. After continue upward movement today guar / guar gum prices slipped from its upper level due to profit booking in forward market.  Speculators are active in market. After fall in NCDEX guar / guar gum prices there was little bit some pressure in physical market but pressure selling was not noticed in physical market. Guar is being traded at Rs 4350/100 Kg  and guar gum is being traded at Rs 9450 in Jodhpur market. There are minor variation in other markets. 

Farmers need not to worry. Commodity prices never run in one direction.  This year  over all guar and guar gum price  will move in upward. Guar prices at level of  Rs 4500/100 Kg will be very critical and can be volatile for a period. Guar prices may take 2-3 days to sustain above this level. New stock of guar  will come after  October-18 in market, up to that time market will have to adjust itself with existing stock.  NCDEX guar / guar gum prices are major source of price discovery for physical market. Single direction NCDEX guar / guar gum price movement for one week can affect physical market btut one or two days volatility NCDEX guar / guar gum prices will not affect physical market.

Crude oil prices are at its highest level after May 2015. Complete Europe and North America, Russia, China are under cold storm there is heavy demand of heating oil and natural gas. With increasing crude oil prices,  it is expected that Guar gum demand will increase in coming days. Crude oil prices has cross the level of USD 68/barrel per day. Higher crude oil prices will badly impact the US economy. US administration will balance OPEC crude oil prices with shale oil. Guar gum is used in fracking technology and fracking technology is used to explore the shale oil. Initial signals of new oil exploration have given by US administration in last week. 

At lower side there is strong support of Guar Churi Korma. In year  2012 Guar Churi Korma support was not not so good. As per situations  It looks, that year 2018 will be historic for Guar. It will be emerge as major contributor to farm export from India. At this time physical market is strong and fundamental of guar are also strong.