Guar seed and Guar gum demand will increase for next 7 Months

For the current Guar crop cultivation cycle of six months have passed. New guar crop will come after 7-8 months. Price of guar seed is still moving around 4000. It is the good sign that prices of guar seed have not dropped below 4000 level. Last budget year was good for Guar. The new budget year has started. Business activity related to guar seed and guar gum will start for the new fiscal year in April month. 

During last two months, Guar seed prices have dropped from its highest level of 4800/100Kg at NCDEX. Guar seed is being sold at the higher price in the physical market than the NCDEX. As per market information pressure of speculators will come down in coming days as the demand of guar seed is expected to increase in the market. 

The arrival of guar seed has almost dropped in the physical market. The numbers of oil rigs are also increasing in the USA. With existing increasing political & military dispute with Russia and increasing trade war trade war with China, Crude prices are expected rise further. The USA would like to increase its market share in global crude oil export by increasing crude oil production. USA would explore its crude oil resources at full capacity so that it can increase the supply to EUROPE to decrease the dependence of Europe on Russian crude oil. Guar gum demand will increase with increasing crude oil production USA.

As per available information this year there was production 8-9 Million Bags of guar seed in India. This much quantity is not sufficient to fulfil the annul demand of guar seed. It is not time to sell the guar seed commodity farmers can wait for next 3-4 Months. 

Guar seed and guar gum prices are strong in the local physical markets. Prices of guar seed and guar gum are quoted higher than Commodity exchanges. Future trading of guar and guar gum is also expected to be strong with increasing export demand. Good quality of guar seed is traded at Rs 4300/100Kg and average quality guar seed is traded at Rs 4100/100 Kg. Standard quality guar gum is traded at Rs 8900/100 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 4098, 4125, 4164 higher by 0.34 percent or INR 14/100 Kg, 0.28 percent or INR 11.5/100 Kg, 0.19 percent or INR 8/100 Kg with open interest of 40140, 102620, 7950 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 8788, 8901, 8980 higher by 0.38 percent or Rs 33/100Kg, 0.15 percent or Rs 45/100, 0.26 percent or Rs 23/100 with an open interest of 17010, 48195, 790 for April, May and June months contract.