Dependency on oil and natural gas industry is taking the guar seed and guar gum prices in uncertainty. Though crude oil is a commodity and it is fuel for global economy, but it has emerged as geopolitics weapon. Global power are trying to prove them selves as superior to control the crude oil prices. With one decision and meeting prices of crude oil start to move ward and next day with another decision prices of crude oil starts to fall. Up and down in prices is regular trend in any business. When demand goes down or production increases then prices tends to go down. Indian Guar seed and guar gum industry is taking the downward crude prices as negative factor. In reality prices of crude oil is going down as production of crude oil is increasing in USA. Today USA is producing more than 11.7 Million barrels per day. USA economy has become net exporter of crude oil.
All this development has happened because of shale crude oil production, which uses fracking technology. Guar gum is major drilling chemical/ingredient in fracking technology. If we look at the data of guar gum export. Then we find that guar gum export is increasing. South American countries have emerged as new destination for Indian Guar gum. Indian Guar gum industry and traders should not respond immediately after guar gum price change.
As per global rig counts data there are 144 more active rigs count then previous year in this week (08/12/18) USA. Arrival of Guar seed in market has dipped due to election, winter and marriage season. This time is last time of peak arrival after December arrival of guar gum will be fall below 10000 -15000 bags per day. Small farmers have already sold their stock after the harvesting as they don’t have holding capacity. Physical demand of gaur is still very high.
Guar seed and Guar gum commodities are being quoted strong in local physical markets to strong buying at lower levels. Prices of Guar seed and Guar gum both are quoted strong. Future trading of Guar seed was closed strong at closing of last trading but future trading of guar gum Guar gum was weak at closing of last trading
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