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Monday, 22 October 2018

Demand of guar gum will increase, with increased crude oil production.

As per the Backer Hudges 4 new oil rigs of crude oil production has added in this month in USA. Currently 1067 oil rigs are functional in USA which are 154 higher than previous year. This is good news for Indian guar gum industry. Consumption of crude oil in Chinese oil refinery is increasing. Consumption of guar gum will also increase with new fracking activities.

Arrival of guar gum is increasing in local markets. Stockist are buying guar in bulk. By the end of this month good arrival of guar will start from rainfed area. Speed of arrival of guar from rainfed area will be limited as farmers of rainfed area can hold guar for longer time in comparison to farmers of irrigated area. After the harvesting farmers from irrigated area clear their old credit and buy the farm input for new crop, so they can’t hold the guar crop for longer time. Colour of guar seed has turned black in irrigated area due to rainfall in last period of crop maturity.

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If the prices of guar remain good at arrival of guar crop in market then it will boost the guar seed and guar gum prices during rest of year. Export of Indian guar churi korma can increase to China because import of soya protein in China has decreased from USA due to some trade dispute. If export of Indian guar churi korma increases, then guar prices will get good support in local markets. 

Prices of guar gum is also good with prices of guar seed. Guar gum is an export demand driven agriculture commodity. Guar is consumed in local markets, but guar gum is consumed in international markets. If arrival of guar seed remains tight in local market, then prices of guar seed will reach near to Rs 5000/100Kg around Diwali.

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