Guar gum and guar price will strengthen with strong crude oil price.

This is fundamentally very strong week for Guar gum and guar. In international market crude oil is being traded above USD 70 /barrel. Active rigs drilling for oil in US is around 175 increased by 12 rigs. Total active rigs in USA, including oil and natural gas are 947. Prices of crude will also gain with weak dollar. In next week it is expected that Brent crude oil price will remain above USD 70/barrel.

Stability in crude oil price will give boost to guar and Guar gum price in Indian market. Guar price and Guar gum price are moving upward with stability. Today future market will open after three days. NCDEX is major source for price discovery. guar price and Guar gum price have noticed strong in local markets during last three days. guar is being traded above Rs 4500/100kg in secondary markets. In major markets guar is being traded above 4700/100 Kg. Guar gum is being traded at Rs 10,200/100Kg. It is noticed that millers are buying guar aggressively at higher prices.




As per marketman before realization of February contract in future market- NCDEX, Guar seed price will cross level of Rs 5000/100Kg and Guar gum will cross level of 11000/100Kg. At this time physical market of guar and Guar gum is very strong. Demand of guar and Guar gum will increase with drilling of new oil well in USA. In international market OPEC countries want to take crude oil above the level of USD100/barrel. OPEC countries are cutting their crude oil production. Higher crude oil prices will also lead to increase in tax collection in USA and other developed countries.

guar, guar gum, guar gum price, guar price,ncdex guar gum, guar gum cultivation , guar gum news, guar gum cultivation consultancy
Guar Gum Cultivation Consultancy

As per information arrival of guar seed has dropped in local markets. Arrival has dropped below 20,000 bags per day. It will drop further.  Farmers and small traders will hold guar in expectation of better price in near future. Currently supply of guar is low and demand is high. Meanwhile at time situation are also fertile ground for speculators. Speculators may try to influence market as per their requirement. New arrival of guar will come in market after October-2018. Any upward peak movement in prices will be suspicious and unstable.



This period is also crucial for new business as drilling chemical companies will search Guar gum suppliers for new fiscal year contracts.  Not only oil drilling companies but all other Guar gum user like pharmaceutical, food, textile and other industries. 

No comments:

Post a Comment

MATCHED CONTENT / SIMILAR NEWS