Guar gum slipped due to profit booking , crude oil is still strong and improving

January contract of guar gum in Forward market NCDEX is closing with 10 % return. January contract of guar gum was traded at Rs 8200/100Kg within four months guar gum contract gave a return of Rs 1000/100 Kg. In same trend guar seed contract was traded at Rs 3700/ 100 Kg and now guar seed is being traded at Rs 4300/100 kg.,   within 4 months guar seed January contract has  gave 13 % return.

Shale crude oil production is increasing in USA . In tight geopolitics, crude oil prices are expected to increase further. OPEC countries has cut down their production. As per another estimate crude oil prices will keep rising in year 2018.

Farmers need not to worry for current guar seed price and guar gum price. Full demand of guar gum from crude oil industry will take time to reach with Indian guar gum exporters. As per millers’ buyers are not giving guar gum powder orders in expectations of lower prices. By end of January guar gum demand will start to arrive with local guar gum processors or guar gum exporter. Prices of guar seed is above Rs 4300/ 100 Kg in local market, it is very positive fact. 

Govt of India is also opening oil drilling blocks. Tenders have been issued for 51 oil blocks. Primary formalities have been completed. Except export demand, domestic demand of guar gum will also increase. Due to increase in prices of crude oil demand of guar gum will also increase from other countries like China, Russia, Europe except USA. As per market men speculators are trying to catch the guar seed and guar gum market by making the selling pressure. 

Guar and guar gum prices are very strong in local markets. As per market trend and fundamental facts, guar will keep its position strong.  Guar prices above level of Rs 4500/100Kg is very important. This price will give another level of price stability and strength to guar seed and guar gum .