Guar seed and guar gum prices are on the move today, with the physical market and commodities market both seeing significant changes. Here's what's driving the movement and what it means for investors.
Guar seed and guar gum are two important commodities that are used in a variety of industrial applications. Guar seed is the source of guar gum, which is a thickener, stabilizer, and suspending agent. Guar gum is used in a wide range of products, including food, beverages, cosmetics, and pharmaceuticals.
Guar seed and guar gum prices have been on the move in recent months, with the physical market and commodities market both seeing significant changes. In the physical market, guar seed prices have risen by over 20% since the beginning of the year. Guar gum prices have also risen, but to a lesser extent.
What's Driving the Movement in the Physical and Commodities Markets?
There are a number of factors that are driving the movement in the physical and commodities markets for guar seed and guar gum. These include:
Increased demand from China and India: China and India are the two largest consumers of guar seed and guar gum in the world. Increased demand from these countries is driving up prices in the physical market.
Reduced supply: The supply of guar seed and guar gum has been reduced in recent months due to a number of factors, including drought in India and Pakistan. This has also contributed to the rise in prices.
Speculative trading: Speculative trading is also playing a role in the rise in guar seed and guar gum prices. Speculators are buying guar seed and guar gum in the hope that prices will continue to rise.
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| Today's Guar Seed and Guar Gum Price: What's Driving the Movement in the Physical and Commodities Markets? |
What Does It Mean for Investors?
The rise in guar seed and guar gum prices is good news for investors who are invested in the guar gum industry. However, it is important to note that prices could also fall if demand or supply conditions change.
Investors who are considering investing in guar seed and guar gum should carefully consider the risks and rewards before making a decision. They should also do their research to understand the factors that are driving the market.
Here are some additional factors that could affect guar seed and guar gum prices in the future:
Weather conditions: Weather conditions in India and Pakistan, where most of the world's guar seed and guar gum is grown, can have a significant impact on prices. Droughts or floods can reduce yields and lead to higher prices.
Government policies: Government policies in India and Pakistan can also affect guar seed and guar gum prices. For example, if the government imposes export restrictions, it could lead to higher prices.
New uses for guar seed and guar gum: The development of new uses for guar seed and guar gum could also lead to higher prices. For example, guar gum is being used as a substitute for some plastics, which could increase demand and drive up prices.
Guar seed and guar gum prices are likely to remain volatile in the near future. However, the long-term outlook for the market is positive, as demand for these commodities is expected to grow. Investors who are considering investing in guar seed and guar gum should carefully consider the risks and rewards before making a decision.
As on last trading day, 14th July,2023, NCDEX guar seed price was INR 5596/Quintal, INR 5688/Quintal, INR 5799/Quintal, for 20th July 2023, 18th August and 20th September 2023 Contract. NCDEX spot price was INR 5631/Quintal. NCDEX guar gum price was INR 11,240/Quintal, INR 11,423/Quintal, INR 11,661/Quintal, for 20th July 2023, 18th August 2023 and 20th September 2023 Contract. NCDEX spot price is INR 11309/Quintal. In local physical markets (Mandi) average guar seed prices are INR 5,500/Quintal and average guar gum prices are INR 11,000/Quintal.
