Guar Guar seed and Guar gum price will ride the upward price movement of crude oil

Guar seed and Guar gum price will ride the upward price movement of crude oil. With growing fear of escalation of tension between Saudi Arabia and Iran, crude oil prices are rising slowly and slowly. It has crossed the level of USD 70/barrel. USA has also pulled it out from the deal with IRAN for nuclear missile development. There are chances of escalation of war between Iran and Saudi Arabia. Yeman based and Iran backed Hauti insurgents are using missile attack on Saudi Arabia and Saudi Arabia is reverting the attack in the same manner. 

OPEC countries are cutting the production of crude oil to support the oil prices. USA is using this opportunity and increasing its market share by increasing the crude oil production. The trade war between China and USA will also increase the tension. Crude oil will get support from geopolitical elements. 

This year all the fundamental factors are positive for upward guar seed and guar gum prices movement. Production of gaur seed was limited and lower than the previous year. As per available market information, production guar seed has estimated around 80 lac bags. By the end of January, there was the export of 4,05,625 MT of guar gum. Speculators are taking advantage of favorable conditions. The market is highly speculative at this moment. As per market conditions, prices must be around the level of 5000/100 Kg and Guar gum must be above 10000/100Kg. Guar Churi, guar korma which is the by-product of guar gum processing industry are being traded at the strong level.

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The new crop of guar seed will come after 8 months, the arrival of guar seed will be remaining limited for next 7-8 months. The industry will full fill the demand with existing stock. Availability of raw material is very limited. Consumption of guar gum powder is increasing with increasing crude oil prices.

Guar seed and guar gum prices are strong in the local markets. Prices of guar seed and guar gum are quoted higher than Commodity exchanges. Future trading of guar and guar gum is also strong with increasing export demand. Good quality of guar seed is traded at Rs 4200/100Kg and average quality guar seed is traded at Rs 4100/100 Kg. Standard quality guar gum is traded at Rs 9000/100 kg. In interior location, guar is traded up to 4000/100 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 4179, 4207, 4259 higher by 0.52 percent or INR 21.5/100 Kg, 0.56 percent or INR 23.5/100 Kg, 0.64 percent or INR 27/100 Kg with open interest of 108170, 40380, 5330 for April May and Jun month contracts.

Guar gum is being also traded upward in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 8900, 9000 higher by 0.74 percent or Rs 65/100Kg, 0.57 percent or Rs 51/100 with an open interest of 47100, 18145 for April and May months contract.

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