Guar seed and guar gum price are moving parallelly with crude oil. Currently, Crude oil prices are the major driver for guar seed and guar gum prices. OPEC is trying to take prices of crude oil toward the upside, but USA shale oil production is enjoying the upward crude oil prices movement. This year international demand for Indian guar gum is also upward. Actual picture will come out with export data of January-18 data will come in market. As per IEA rig count in USA is increasing. The demand of guar will keep increasing with increasing rig count.
Guar gum and guar seed prices are showing highly speculative movements in February18. Prices have fallen from its three-year peak point in February month. Guar seed and guar gum prices are showing recovery. Speculators are active in the market, so they are putting pressure on price movements. Traders and farmers are positive about major price gain in guar seed and guar gum this year.
Last guar seed price rise was up to 4700/100Kg. There are possibilities that prices will cross 5000 level. New production of guar seed will come after 8 months and the market will in demand condition due to increasing fracking activities in USA. There are strong possibilities that Central govt will increase the MSP of the Kharif pulses as current govt is focused on farmer’s welfare and will give monetary incentives to farmers.
Contract of guar seed and guar gum has entered in March contract as February contract has finished at 4500/100kg, February contract was started around 3700/100Kg, thus February contract finished with 26% gain from its initiation price. Most of forward contracts of guar seeds and guar gum are being traded in March contract. Next 15-20 days will be very important and prices will move upward because the contract will settle around 20thMarch,2018.
Contract of guar seed and guar gum has entered in March contract as February contract has finished at 4500/100kg, February contract was started around 3700/100Kg, thus February contract finished with 26% gain from its initiation price. Most of forward contracts of guar seeds and guar gum are being traded in March contract. Next 15-20 days will be very important and prices will move upward because the contract will settle around 20thMarch,2018.
There is the big war between two major oil producer groups OPEC and Shale Oil. Both groups want prices upward. OPEC is trying to cut production to restrict the supply, but US shale oil is enjoying the upward price movement by supplying its crude oil production to major crude oil markets like China and India. The demand of guar seed will also increase with domestic demand of guar seed for sowing in summer / Kharif season in June - July.
very helpful blog.. thank u
ReplyDeletei want to know about the approx target in march month.. ur advise Wil b helpful to me
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