Guar gum prices slipped below Rs 10,000 level under selling pressure

Since last two days prices of Guar seed and guar gum are declining continuously in future commodity market. On Monday it was bloodbath for Guar seed and guar gum prices. Market closed with lower circuit. In this week new budget will be put in front of parliament by the central government. Before the announcement of the new budget, gaur seed and guar gum prices are under the pressure of profit booking at upper level.

The Oil rig count data released but Baker Hughes are showing the declining trend in active rig in USA. Currently 621 oil rigs are active in USA which are 150 active rig lesser than the previous year rig count. Major demand of guar gum is driven from the oil and natural gas industry. Active oil rig are major indication of demand trend. Generally NCDEX work are price discovery tool for the Guar seed and guar gum prices.

For next 8-9 month supply will remain the same it will not change up to the arrival of new crop in market. Price movement will depend only on the demand of product. There are two main demand, Demand of the gaur gum powder, Demand guar meal (Churi Korma), beside these if there will be any change in the demand of other animal feed product or guar gum substitute then price may move.

The pressure on prices in future market is transferring to local physical market. There is selling pressure in local markets, so buyers are quoting low for the available stock. There are not trading on current level of prices. The current price fall seems the selling pressure. Prices are expected to bounced back after the budget.

Application of guar gum increasing slowly and slowly. Recently Nestle has launched a guar gum based health supplement product, Nestle Resource Fiber Choice.  It is guar gum based product partially hydrolyzed guar gum is used in this product. There is 98% guar gum in this product. As claimed by Nestle this product is good for Gut Health.

                                                                      @copyright of Nestle

Guar seed and guar gum prices are weak in the local physical markets. Prices of Guar seed and guar gum are quoted lower than Commodity exchanges NCDEX. Future trading of Guar seed and guar gum is also expected to remain low with selling pressure at upper levels. Good quality of Guar seed is traded at Rs 5200/100Kg and average quality Guar seed is traded at Rs 4900/100 Kg. Standard quality guar gum is traded at Rs 9900/100 kg. In interior location, Guar seed is traded up to 4800/100 Kg. Guar seed is being traded weak in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar seed-10MT is traded at Rs 5304 stable at previous close for February contract.

guar gum is also traded week in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar gum- 5MT is traded at Rs 9968, 10115 lower by 1.39 percent or Rs 140/100Kg, 1.33 percent or Rs 136/100 Kg with an open interest of 35955, 21950 for Feb and March month contracts.