Guar gum prices will rise with Increasing crude oil price above USD 70/Barrel.

Crude oil prices are going up with increasing tension between Saudi Arabia and Iran. Saudi prince is in the USA for further discussion on power balance with IRAN. USD is also weak in the international forex market. Price of Brent crude oil has reached the level of 69.47 USD/barrel and WTI crude oil has reached to the level of 65.71 USD/barrel. Guar is an industrial commodity. This is the demand driven commodity. Major portion of guar gum powder is used in Oil and Natural Gas Industry in the fracking process. Currently, fracking activities are active in USA. Guar gum is used in bulk quantity in the fracking process. 

As per available export data, export of guar gum has increased by 49.17%. Arrival of Guar has almost gone down. It is time for Rabi harvesting. Remaining arrival of guar in market will also stop. There is news that speculators are active and trying to manipulate the market. Farmers and Traders must keep away from speculative news, this year Guar will perform as per strong fundamentals. Production and demand both are positive for strong future of guar.

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 yesterday. Good quality of guar seed is traded at Rs 4300/100Kg and average quality guar seed is traded at Rs 4200/100 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 4223, 4243, 4291 higher by 1 percent or INR 42/100 Kg, 0.81 percent or INR 34/100 Kg, 0.29 percent or INR 12.5/100 Kg with open interest of 125290, 30830, 3590 for April May and Jun 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 9010, 9125, 9212 higher by 0.9 percent or Rs 80/100Kg, 1.04 percent or Rs 94/100, 0.56 percent or Rs 51/100 Kg with an open interest of 56345, 10150, 45 for April May and Jun month contract.

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