Guar and Guar gum prices will rise with stable crude oil price.

Crude oil prices are stabilizing in the international market above USD 60 / barrel. OPEC is limiting its crude oil production to strengthen the crude oil prices. The share of shale oil production is increasing with increasing crude oil prices. Guar is major Kharif commodity in western Rajasthan. Peak arrival period has been already gone. It is the time for the arrival of Rabi production in the market. Shale oil production is major guar gum consumption process. Guar gum is used for drilling chemical as a gelling agent. It is used to fix the proppant in the shale cracks after fracking process.

Geopolitics conditions are improving. Political stability is coming globally. Industrial production is increasing in China and India. Demand is increasing from both the countries. As per information USA crude oil has reached to Indian Ports. Indian major guar gum production Group company Vikash WSP is entering at next level in the business of drilling chemical.

Another company of Vikash group by the name of VIKAS Granary is entering in the business of manufacturing of proppant in India. Vikash granary has granite mines they want to enter in the business of manufacturing of proppant. Proppant is big coarse size sand particle. This will a value-added activity for guar gum powder export. India will earn more from the export of mixture of guar gum and proppant. 

Guar seed and guar gum are strong in the local market. Guar seed and guar gum are quoted high in the local market. Future trading is also strong since last three days. Good quality of guar seed is traded at Rs 4500/100Kg and average quality guar seed is traded at Rs 4400/100 Kg. Standard quality guar gum is traded at Rs 9650/100 kg. In interior location, guar is traded up to 4300/100 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 4430, 4469, 4515 higher by 0.37 percent or INR 16.5/100 Kg, 0.3 percent or INR 13.5/100 Kg, 0.07 percent or INR 3/100 Kg with open interest of 149810, 41350, 3140 for March, April and May month.

Guar gum is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 9655, 9790 higher by 0.64 percent or Rs 61/100Kg, 0.69 percent or Rs 67/100 Kg with an open interest of 60075, 16520 for March and April contract.