Last week was very good for guar seed and guar gum prices but in this week prices of guar seed and guar gum has fallen with falling crude oil prices. That is just a sentimental factor. USA and OPEC have increased the crude oil production before the sanction on IRAN. Increase in production of crude oil will continue so that countries can cut the oil import from IRAN and supply of crude oil can be normal after sanction on IRAN. Oil production in USA is based on fracking technology and guar gum is used in fracking technology. 15 OPEC countries produced more than 33.3 million barrel per day of crude oil in October month which is highest after month December-2016. Crude oil prices are fundamental factors for guar seed and guar gum industry, but it should not be considered same in all situations. Currently crude oil prices are decreasing due to increased oil production. Demand of crude oil is still very high.
Guar in not a single used commodity. Guar is multi use commodity. Future demand of guar gum may arise from any industry. Oil and Natural Gas industry will keep using Guar gum in crude oil production. There is trade dispute between USA and India. Recently USA has removed 50 Indian products from duty free GSP list most of them are agricultural products. Demand of Food grade guar gum is regular. Prices of Guar Churi/ Guar Korma is good and it is maintaining the higher levels.
This year production guar seed is estimated lower than previous years. Marketman are estimating the production of guar seed around 60 - 70 Lakh (6-7 Million) bags (100 Kg each). That is insufficient for current year demand of guar seed. Demand of guar seed will remain weak in this week due to Diwali season. Guar gum processing factory staff will be on Diwali holidays. Arrival of guar will be also poor as farmers are busy in festival. Guar seed and guar gum Business activities will increase after Diwali week (after 11th November). Supply is still poor in market. Speculators are active in market. Keep hold on physical stock and positions of guar and guar gum . Guar seed and guar gum prices will bounce back with increased business transaction. Volume of November transaction is coming down but volume of December month contract is increasing in commodity market that is good sign.
Guar seed and Guar gum commodities are being quoted weak in local markets due to falling prices in commodities markets. Prices of Guar seed and Guar gum both are quoted weak. Future trading of Guar seed and Guar gum are also weak due to falling crude oil prices. Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4500/100 Kg. Standard quality guar gum is traded at Rs 10300/100 kg. In interior location, guar seed is traded up to 4300/100 Kg. Guar seed is being traded downward in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT closed at Rs 4548, 4635, 4693 lower by 0.07 percent or INR 3/100 Kg, 0.02 percent or INR 1/100, 0.07 percent or INR 3.5/100 Kg with open interest of 66020, 104260, 6430 for November, December and January month contracts.
Guar gum is also being traded weak in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being closed at Rs 9920,10080, 10200 lower by 0.14 percent or Rs 14/100Kg, 0.12 percent or Rs 12/100, 0.42 percent or Rs 43/100 with an open interest of 17980, 58580, 1135 for November,December and January month contracts.
No comments:
Post a Comment