Guar and guar gum price are strong and stable in local market. Future contracts are gaining

Guar seed and guar gum price are stable in local markets. Prices of Guar seed and guar gum price are strong and upward in the forward market.  Crude oil price in the international market was slightly downward in starting of this week. Prices of crude oil will almost remain stable in this week.  Oil drilling and other petroleum companies are earning positively. Profit of leading petroleum company “SHELL” has doubled in the year 2017-18 to 16 billion. Cash inflow of petroleum companies has increased.

Guar gum industry players are working on R&D. Recently Vikas WSP has developed a new product derived from guar gum as Thermogel-25. Vikas WSP has announced that they have received the order of Rs 92.37 Crore for their new guar gum Thermogel-25. Thermogel-25 is developed in substitution of costly locus bean gum. Thermogel-25 will be used in ultra-fermented and sausage roll application.

As per arrival of Guar seed is concerned most of Guar seed from farmers has arrived in the market from this year production. Most of the farmers are small and marginal, they don’t have holding power for more than 1 - 2 months.  Currently, stock Guar seed is lying with small traders and stockist. Processing companies are buying guar on full-scale.

Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4500/100 Kg. Standard quality guar gum is traded at Rs 10100/100 kg. In interior location, guar is traded up to 4200/100 Kg. guar seed is being traded strongly in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is being traded at Rs 4648, 4711, 4774 higher by 0.77 percent or INR 35.5/100 Kg, 0.72 percent or INR 33.5/100 Kg, 0.96 percent or INR 45.5/100 Kg with open interest of 113430, 120370, 14260 for February, March and April month.

Flowering in Guar gum plant 

Guar gum is being traded strongly in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 10162, 10320, 10448 higher by 1.94 percent or Rs 193/100Kg, 2.1 percent or Rs 212/100 Kg, 1.75 percent or Rs 180/100 Kg with open interest of 24835, 55975, 580 for February, March and April contract.

The arrival of guar is around 17,000-18,000 Bags per day.  The arrival of guar is expected to come down further in local markets as big farmers and small traders are in the wait and watch condition. They are holding material. Farmers don’t need to take tension, this year production of guar is very limited. The demand of guar and guar gum will rise with drilling activities. Stability in prices is more important than upward movement. Stability in guar and guar gum will create confidence among stakeholders, while one way sudden rising in guar and guar gum price will create a fear