Guar Seed & Guar Gum declined due to profit booking at upper levels. ( Guar Seed & Guar Gum Market Report )

 Guar Seed & Guar Gum Market Report

Guar Seed & Guar Gum declined due to profit booking at upper levels.

Guar seed and guar gum prices witnessed a mild decline in domestic markets on Wednesday due to profit booking at higher levels after the recent rally. Selling pressure was observed across major trading centres in Rajasthan, while market participants continued to track export enquiries, global crude oil price movements, and increasing demand for cattle feed, which are currently influencing sentiment in the guar complex.

In the Jodhpur physical commodities market, guar seed is currently trading around ₹5,450 per 100 kg, while guar gum is quoted near ₹10,100 per 100 kg. The overall market sentiment remains weak to stable, though traders believe that improving industrial demand and export enquiries may provide underlying support to prices in the coming sessions.

In the spot market, good quality guar seed is being traded close to ₹5,400 per 100 kg, while average quality guar seed is quoted around ₹5,200 per 100 kg. Standard quality guar gum is traded near ₹10,100 per 100 kg. In interior markets of Rajasthan, guar seed prices are reported in the range of ₹5,000 to ₹5,200 per 100 kg, depending on quality, moisture level, and local demand conditions.

In the futures segment on NCDEX (National Commodity & Derivatives Exchange), guar gum contracts traded lower due to profit booking and selling pressure. The March contract of guar gum (5 MT) was trading at ₹10,026 per 100 kg, declining by ₹66 or 0.66%, while the April contract was quoted at ₹10,171 per 100 kg, down by ₹75 or 0.74%. The May contract was trading near ₹10,370 per 100 kg, showing a decline of ₹86 or 0.83%. Open interest in these contracts stood at 12,160 lots for March, 54,090 lots for April, and 5,569 lots for May, indicating active participation by traders despite the short-term correction.

Similarly, guar seed futures also traded slightly lower in the NCDEX market. The March guar seed contract (10 MT) was trading around ₹5,461 per 100 kg, declining by ₹40 or 0.73%, while the April contract was quoted at ₹5,515 per 100 kg, down by ₹43 or 0.78%. However, the May contract was trading marginally higher at ₹5,569 per 100 kg, gaining ₹1 or 0.02%, indicating some buying interest at lower levels. Open interest stood at 16,225 lots for March, 47,610 lots for April, and 35 lots for May contracts.

Arrival Situation

Daily arrivals of guar seed in major mandis of Rajasthan remain moderate, as farmers are currently holding their stocks in anticipation of better prices. Compared with previous seasons, arrivals during the current marketing season have been relatively slower, mainly due to lower production and cautious selling by farmers. This restrained supply in the physical market is providing partial support to prices despite short-term corrections in the futures segment.

Weak Monsoon Impact on Production

One of the key fundamental factors influencing the guar market this season is the weak southwest monsoon in several guar-growing regions of Rajasthan and Haryana. Due to below-normal rainfall during the crop growth period, overall guar production is estimated to be lower compared to the previous year. Reduced crop output is tightening the overall supply scenario in the market and providing structural support to guar seed and guar gum prices.

Rising Crude Oil Prices Supporting Industrial Demand

Another major factor supporting the guar complex is the rise in international crude oil prices. Higher crude prices typically encourage increased drilling activity in the oil and gas sector, where guar gum is widely used in hydraulic fracturing fluids. As drilling activity strengthens, global demand for guar gum tends to increase, which indirectly supports guar seed prices in India. Market participants believe that if crude oil prices continue to remain firm, industrial demand for guar gum may improve further in the coming months.

Increasing Demand for Cattle Feed

Demand for guar meal and guar churi, which are widely used as cattle feed protein, has also increased in recent weeks. Supply disruptions in global soybean markets due to geopolitical tensions, including the Iran-USA conflict, have created uncertainty in the availability of soybean meal, which is traditionally used as a major protein source in animal feed. As a result, guar meal is increasingly being used as an alternative protein feed, which is supporting the overall demand for guar processing products.

Market Outlook

Considering the current market fundamentals — lower guar production due to weak monsoon conditions, rising crude oil prices supporting oilfield demand, increasing cattle feed demand for guar meal, and moderate mandi arrivals — the guar complex is expected to maintain a firm undertone in the near term.

However, short-term volatility may continue in the futures market due to speculative trading and profit booking. Market participants will closely monitor export enquiries, crude oil price movements, global drilling activity, and mandi arrivals for further direction in guar seed and guar gum prices. Overall, the guar market is likely to remain range-bound but supported by strong underlying fundamentals in the coming weeks.