Guar Seed and Guar Gum Prices may strengthen with Improving Global Economic Activities
Strengthening Crude Oil Prices
Crude oil prices are improving in the global market with increasing economic activities. Currently, crude oil is being traded at an eight-week high. The global economy is showing strong signs of improvement. Brent crude oil is being traded at USD 82.43 per barrel, and WTI Crude oil Prices are being traded at USD 77.363 per barrel. Both indicators of crude oil are showing strong signs. Improved crude oil prices will support guar gum prices from their current level. The demand for guar gum is expected to improve. Physical demand for Guar gum will strengthen guar seed and guar gum prices in the local market.
USD and INR Exchange Rate
As the exchange rate of USD is improving, it will carry more cash flow into the market. The demand for guar gum is expected to rise from this level due to increased cash flow. Importers will engage in maximum contracts with the increased cash flow. A weakened rupee will strengthen the current level.
Guar Production Estimates
As per the data released by the State Government of Rajasthan, the estimated guar seed farming was done on 28,92,840 hectares, and the estimated guar seed production will be 17,48,781 metric tons of guar seed production. Prices are expected to improve with increasing economic activities. Prices will not fall further from this level. There are fewer chances of a downfall in guar seed and guar gum prices.
The current level may yield good returns with a lower risk factor. Physical demand will also increase. In the last 12 months, 8-10 new Guar Gum factories have been established in Rajasthan under different government schemes. Even two plants have been established for modified Guar Gum Powder manufacturing. Modified guar gum is used for premium quality toiletry and cosmetic products.
In the week of January from 22nd January 2023 to 28th January 2023, NCDEX guar seed prices were being traded at INR 5431, 5490 per 100 kg (quintal) with open interest of 65,375 and 25,600 for 20 Feb 2024 and 20th March 2024 contracts. NCDEX guar seed spot price is INR 5454 per quintal. NCDEX guar gum prices are being traded at INR 10546.10695 per 100 kg (quintal) for 20 Feb 2024 and 20th March 2024 contracts with open interest of 43,715 and 14,275. NCDEX guar gum spot price is INR 10719 per quintal. In local physical market yards (Mandi), guar seed prices are quoted at INR 5200 per quintal, and guar gum prices are quoted at INR 10500 per quintal.
No comments:
Post a Comment