Guar seed and Guar gum cultivation consultancy

Guar is an arid crop grown in western arid part of India. Botanically it is known as Cyamopsis tetragonoloba. Western part of India ( Rajasthna)  is an arid area and rainfall in this area is also very low. Guar crop is grown here since centuries. Guar seed is processed into Guar gum powder, which is used in many industries like crude oil and natural gas, food processing, textile pharmaceuticals etc.... In Portuguese guar gum is known as "Goma De Guar" in Spanish it is known as "Goma de Guar". In German it is known as "Guarkernmehl". In French it is Known as "La gommede guar". In Russian it is known as  "Гуаровая камедь". In greek it is known as " κόμμιγκουάρ ". In Swedish it is known as " Guargummi ". In Chinese It is known as "瓜爾豆膠 " In Italian it is known as "Gomma di Guar". In polish it is known as "Guma guar".

Guar is an annual legume crop. It is cultivated in low water condition, It requires well drainage soils for good root development.  Guar is a nitrogen fixation crop and it is used as green manure. Green pods of Guar is used as vegetable purpose like other beans.  Guar plant  is good fodder for cattle. Cooked  Guar seed is used as concentrated feed for milking cattle's. By product of guar seed processing is known as Guar meal, Guar korma. There is 50-56% protein in Guar Korma.

Guar gum seed is an industrial crop. Guar seed is processed into guar split and guar splits are further processed into Guar gum powder. Guar gum power is used in various industries. Guar gum has various food applications. Guar gum is used as  viscosity  agent. Guar gum is also used as stabilizer. Guar gum is widely used in sauces, ketchup, juices, ice cream , biscuits, Gluten free cooking and many more . Guar gum is  used in printing industry as moisture retention in Ink. Guar gum is used in paper industry. Guar gum is used in textile industry.

Guar gum is also used in cosmetic items, shampoo, moisturizers, liquid shop, lipsticks and many more. Guar gum is also used in pharmaceuticals industry as binding agent , viscosity agent. Guar gum is  also used as dietary fibers. Guar gum used in fish and meat industry. The major application of guar gum is in oil and natural gas industry. Guar gum is used as drilling chemical in Oil and Natural Gas Industry. Around 60 % demand of Guar gum  arises from oil and Natural Gas Industry.

Guar gum is very good agriculture crop. Guar gum is beneficial at every stage, green stage is used as green manure, Green pods of Guar gum are is used as vegetable, Guar gum Seeds is used as cattle concentrate. We provide complete solution for Guar gum and Guar gum seed cultivation and guar  gum seed processing, with complete market intelligence and product information. We have provided our services in many countries.


Please feel free to contact us :
Email : ganeshprajapat@gmail.com
Call/Whatsapp +91-9509888669
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How can Guar seed farmers make profit ? ( PART-2 )

Guar seed farmers can make extra profit from their corp with collective decisions and better marketing strategies.

Go for warehouse receipt funding. 

Farmers require money after harvest. Instead of selling to Traders at the time of lower prices, farmers should store his commodity in bank approves collateral managed warehouses. Bank will finance to farmers up 80%-90% value of commodity. Interest rates are very low for farmers. they can complete their financial need from that financed money. Commodity will be under control of farmers. Once the prices of Guar increase in market. Farmers can repay the funding to bank and get his commodity out from warehouse and he can sell the commodity in open market. He can directly sell that commodity to commodity exchange while commodity remains laying in warehouse.

Formation of farmers group. 

Instead of selling commodity in small lots. Farmers should make a group and make a big lot for selling. It will reduce the operational and transportation cost. It is easy to store the big lot in ware house. It easy to weight it in one lot. 

How can Guar seed farmers make profit ? ( PART-2 )

Farmers group should take the weight of their commodity before selling 

Some notorious traders and processors make manipulation in weighing. Farmers should take the weight of their produce at known weighing bridge before selling. 

Put the commodity on the plastic sheet for auction. 

Generally, farmers put the guar commodity on auction platform without any plastic sheet. If commodity in not auctioned on time, then it keeps scattering. If will be put of plastic sheet, then farmer can cover his commodity in case of non-auction. Sometimes open laying commodity leads to unnecessary moisture loss. Farmers can cover his commodity if commodity remains laying, they can save the wastage and moisture loss.

Farmer can directly sell to processors/factories. 

There are some schemes where processor don’t need to pay the MANDI tax if farmers are selling directly to them. Processor don’t entertain the small quantity. There are many points where farmers need to be careful like percentage of wastage declared by the processors, actual weight of commodity, deduction of weight of packing bags. 

Value addition of guar seed. 

Though there is nothing to value addition with farmers except agriculture production of guar seed. If farmers make some strategy group level then they can get the guar seed processed any closed processing factory at Job work. They can store the guar gum with NCDEX. If future prices of guar gum are good, then they can hedge the guar gum prices. They can sell the Guar Churi/ korma in open market to farmers / Cattle feed manufacturer. Always there is some margin at every point of value addition. Farmers should try to go for value addition as much as they can if they find some additional margin.

Instead of individual approach farmers should go for collective approach and strategy. With collective approach farmers can make minimize the operation cost of commodity selling process. Always avoid distress selling. If prices fall below the expectation, then there is always possibilities that prices will bounce back in near future.

How can Guar seed farmers make profit ?

Guar is a arid crop it is grown only in one climatic belt of world. More than 90% are of that belt comes on Indian and rest 10 % Area is in Pakistan. Guar is an industrial crop. It is processed into guar gum powder. Guar gum powder is used many industries due to its unique chemical and physical quality. 

Guar Farmer should take Guar as secondary crop. 

Guar farmers should not take it as a primary crop. Once it become the secondary crop then cost of cultivation will come down and opportunity cost of land increases. Profit from low cost cultivation crop will be always high. It will control the supply of crop in market. Priority crop for selling by farmers is always primary crop. Farmer will not go for urgent selling of guar crop. Commodity will be stored with farmer and there will be leverage with farmers if prices goes up. 

Don’t sell complete crop produce after harvest 

Farmer should not sell his complete production of Guar in market just after harvest. It will control the flow of produce I market. In first lot farmers should sell only 30% commodity. In the case of price rise after peak arrival. Farmers will have some quantity to encash the increased prices. 

Always go for cleaning and Grading. 

At the time of peak arrival sell the low category material. When there is peak arrival all the material is considered as low quality. Farmers will get good price of lower quality. At the time of increased prices good quality material gives good rates over the increased prices. Generally, traders will try to negotiate at quality at increased prices to get the produce from farmers at cheaper price. 

Monitor Crude oil prices. 

Major portion of guar gum powder goes to oil and natural gas well drilling activities. If Farmers get an overview that crude oil prices are keep increasing continuously then he should hold the Guar as much as he can. It will give good return after the peak arrival. 

Monitor Guar Churi & Korma prices 

Guar Churi is by product of guar gum processing industry, which is produced up to 70% of quantity of guar seed. It is rich in protein content. Farmers purchase churi korma for their cattle regularly as cattle feed. If the prices of guar Churi Korma is increasing in market, then it is indication that prices of animal feed protein are increasing, and it is indication that Guar seed prices are stable at lower side. Guar Churi Korma is substitute of Soya Meal which is used as animal feed protein. 

Monitor prices on NCDEX. 

NCDEX is forward market. In case of future demand prices of forwards contracts remains higher than current month. Farmers will have an idea about future demand and price movement. If Future prices are poor, then there is prediction of poor demand and downside movement in coming future. Farmers can make alternative strategy in case of poor demand. 

Hedging the future high prices. 

Hedging is good strategy to manage the risk of future price fall. NCDEX provides free training to farmers for commodity trading. Farmers should make tradable (10MT / 100 Quintal in NCDEX) lot of their commodities and hedge the prices. In the case of future downfall in prices. Farmers will safe and they can sell the Guar as per hedged price. Generally hedging is opted to avoid the risk price fall.

Guar seed or Guar gum cultivation / Farming consultancy

Guar is an arid crop grown in western part of India. Botanically it is known as Cyamopsis tetragonoloba. The western part of India is arid area and rainfall in this area is also very low. Guar crop is grown here for centuries. Guar seed is processed into Guar gum powder, which is used in many industries. In Portuguese guar gum is known as "Goma De Guar" in Spanish it is known as "Goma de Guar". In German it is known as "Guarkernmehl". In French, it is Known as "La gommede guar". In Russian it is known as  "Гуаровая камедь". In greek it is known as " κόμμιγκουάρ ". In Swedish it is known as " Guargummi ". In Chinese It is known as "瓜爾豆膠 " In Italian it is known as "Gomma di Guar". In polish it is known as "Guma guar".

Guar is an annual legume crop. It is cultivated in low water condition, It requires well drainage soils for good root development.  Guar is a nitrogen fixation crop and it is used as green manure. Green pods of Guar is used for the vegetable purpose like other beans.  Guar plant is good fodder for cattle. Cooked  Guar seed is used as concentrated feed for milking cattle's. By-product of guar seed processing is known as Guar meal, Guar korma. There is 50-56% protein in Guar Korma.

Guar gum seed is an industrial crop. Guar seed is processed into guar split and guar splits are further processed into Guar gum powder. Guar gum powder is used in various industries. Guar gum has various food applications. Guar gum is used as viscosity agent. Guar gum is also used as a stabilizer. Guar gum is widely used in sauces, ketchup, juices, ice cream, biscuits, Gluten-free cooking and many more. Guar gum is used in the printing industry as moisture retention in Ink. Guar gum is used in paper industry. Guar gum is used in textile industry.

Guar gum is also used in cosmetic items, shampoo, moisturizers, liquid shop, lipsticks and many more. Guar gum is also used in pharmaceuticals industry as the binding agent, viscosity agent. Guar gum is also used as dietary fibers. Guar gum used in fish and meat industry. The major application of guar gum is in oil and natural gas industry. Guar gum is used as drilling chemical in Oil and Natural Gas Industry. Around 60 % demand of Guar gum arises from oil and Natural Gas Industry.

Guar gum is very good agriculture crop. Guar gum is beneficial at every stage, the green stage is used as green manure, Green pods of Guar gum are is used as the vegetable, Guar gum Seeds are used as cattle concentrate. We provide the complete solution for Guar gum and Guar gum seed cultivation and guar gum seed processing, with complete market intelligence and product information. We have provided our services in many countries.



Please feel free to contact us :
Email : ganeshprajapat@gmail.com
Call/Whatsapp +91-9509888669

This year export demand of guar gum has increased 42%

As per primary data released by APEDA, export of guar gum has increased in thsi year in comparison to previous year. Last year (2016) there was export  of 2,26,431 MT of gur gum during April to November and This year (2017) there is export of 3,21,570 MT of Guar gum during April to November . There is increase of 42% in terms of volume of guar gum. 

In monetary term last year there was export of 1672 Crore Rupees, this year there is export of 2588 Crore Rupees.  There is in crease of  54.8% increase in value of exported guar gum in Indian rupees. In American Dollar, last year value of exported guar gum was 250 Million USD this year value of  exported guar gum is 401 Million USD. There is  60.8% increase in value of guar exported guar gum in USD.

Significant 42% demand has increased from April to November period . As per market inputs It is also expected that trend will remain in same direction for the rest of period from December to March. 

Guar seed / Guar gum cultivation consultancy

Guar is an arid crop grown in western part of India. Botanically it is known as Cyamopsis tetragonoloba. western part of India  is arid area and rainfall in this area is also very low. Guar crop is grown here since centuries. Guar seed is processed into Guar gum powder, which is used in many industries. In Portuguese guar gum is known as "Goma De Guar" in Spanish it is known as "Goma de Guar". In German it is known as "Guarkernmehl". In French it is Known as "La gommede guar". In Russian it is known as  "Гуаровая камедь". In greek it is known as " κόμμιγκουάρ ". In Swedish it is known as " Guargummi ". In Chinese It is known as "瓜爾豆膠 " In Italian it is known as "Gomma di Guar". In polish it is known as "Guma guar".

Guar is an annual legume crop. It is cultivated in low water condition, It requires well drainage soils for good root development.  Guar is a nitrogen fixation crop and it is used as green manure. Green pods of Guar is used as vegetable purpose like other beans.  Guar plant  is good fodder for cattle. Cooked  Guar seed is used as concentrated feed for milking cattle's. By product of guar seed processing is known as Guar meal, Guar korma. There is 50-56% protein in Guar Korma.

Guar gum seed is an industrial crop. Guar seed is processed into guar split and guar splits are further processed into Guar gum powder. Guar gum power is used in various industries. Guar gum has various food applications. Guar gum is used as  viscosity  agent. Guar gum is also used as stabilizer. Guar gum is widely used in sauces, ketchup, juices, ice cream , biscuits, Gluten free cooking and many more . Guar gum is  used in printing industry as moisture retention in Ink. Guar gum is used in paper industry. Guar gum is used in textile industry.

Guar gum is also used in cosmetic items, shampoo, moisturizers, liquid shop, lipsticks and many more. Guar gum is also used in pharmaceuticals industry as binding agent , viscosity agent. Guar gum is  also used as dietary fibers. Guar gum used in fish and meat industry. The major application of guar gum is in oil and natural gas industry. Guar gum is used as drilling chemical in Oil and Natural Gas Industry. Around 60 % demand of Guar gum  arises from oil and Natural Gas Industry.

Guar gum is very good agriculture crop. Guar gum is beneficial at every stage, green stage is used as green manure, Green pods of Guar gum are is used as vegetable, Guar gum Seeds is used as cattle concentrate. We provide complete solution for Guar gum and Guar gum seed cultivation and guar  gum seed processing, with complete market intelligence and product information. We have provided our services in many countries.

Please feel free to contact us :
Email : ganeshprajapat@gmail.com
Call/Whatsapp +91-9509888669

Demand of Guar gum is expected rise in next year .

This year Guar seed prices are rising slowly and slowly. It has crossed the level of Rs 4000/100 Kg. As per global energy organizations crude oil production is expected to increase in coming year 2018. Oil production of USA is going to cross the level of 10 Million Barrel Per day in 2018. With increasing crude oil prices new drilling activities will start in USA. Demand of drilling chemicals will increase. Currently crude oil prices are above USD 62 / Barrel.

During this month prices of Guar seed are moving around 3800-3900/ 100 Kg. This is last phase of peak arrival time of Guar seed in local markets in Guar seed growing area. Supply of guar seed from farmers to market will come down by the end of December. New stock has almost settled either with traders / processor or farmers. By this time if farmers has not sold his production then he will wait for 5-6 months.

Next 3-4 months are very important for guar seed.  As per market information , total production of guar in this year is expected around 70,00,000-75,00,000 Bags ( 100 kg each). This figure is much lower than previous years. In next three four months prices of guar seed is expected to cross the level of Rs 4500 / 100 Kg. 

As per inputs from markets and other stack holders current demand of guar gum is low. If we consider all facts then we find that Guar seed will god return in coming months. In international market Crude oil prices are also improving slowly and slowly.

Will guar seed ( Guar gum ) give good return this year 2017-2018 ?

During last three years Guar was under pressure of major factors like over production, Poor demand and poor crude oil prices. As commodity Guar gave a good return during last year. Last year arrival prices weer around 3200/ 100 Kg and it went up to 4200/100 Kg . During last year there was around 30 % hike in prices. This year it is expected that Guar will give good return.

( a) Low Cultivation Area ; This year total guar cultivation area was around 36,00,000 Hectare. Most of area was from rainfed area. Where productivity remains around 200 Kg per hectare or lower. As per inputs from different sources Total production of guar is expected to around 70,00,000-72,00,000 Bags.Crop was poor in comparison to last years. 

(b) Poor crop.  : This year climatic condition for guar cultivation was poor. Rainfall distribution was not equal . Most of cultivation area was under rain fed condition. In earlier some are was under irrigated conditions so production was not so bad in those area. Weight of seed is also poor. It will impact the recovery of guar split from guar seed.

(c) Improving crude oil prices : Crude oil  prices is major fundamental factor toward the demand side. if prices of crude oil goes up then it will impact new oil drilling activities in USA and Other new countries. It is expected that demand of Guar gum will increase with improving crude oil prices. It is moving toward USD 70 per Barrel.

All the factors are positive for guar commodity. Comparatively Guar will give good return in comparison to other kharif commodities.

Guar seed/ guar gum is in upward trend

August month is very positive for guar seed. It has crossed the level of 4000. 4000 is major psychological level. Prices will remain around 4000 in next week. There will be some selling pressure in physical market. Investors who have purchased guar at level 2900-3000 will try to move out from guar contract at 4000 level with 30 % return. Level of of 4000 is a decision-making point for investors. We will see a regular up and down between 4000-4500 level.

Once Guar will cross the level 4500 then buying will start in it. As per fundamental reports guar crop is not good in many areas. It is damaged in flood. It is facing drought in major guar cultivation belt. Crude oil is also stable above USD 50/Barrel. OPEC has cut down  production to control the prices. Supply of oil is also tight in USA. Recovery has noticed in oil prices. As per industry report oil and natural industry is again showing interest in guar gum instead of other artificial replacement.

Mostly future market trading governs Guar trade. Current contract in future market will come in realization in mid of October. There is time of two months in realization of contract. At this time investors will be not in hurry in exit. Once prices will stable above 4000 for 5-6 days then strong buying will be noticed and prices will start move toward 4500/100 Kg.

Guar gum has crossed the level of 8400. With recovery in export demand guar gum is moving toward the level of INR 9000/100 Kg. Sowing of Guar seed has almost completed. Final figures of sowing will be come out by the end of August month. Speculators are active in market. Speculators are ultimate risk taker in market. As per market information upward trend will be continue. There is demand in physical market and arrival of guar is very poor in rainy season. Supply will be remain tight with increasing prices.

Guar seed and guar gum are not giving return / moving as per expectation.

Guar seed & Guar gum prices post demonetization

First stage of demonetization has almost completed. Supply chain of most of commodities have disrupted badly and prices dropped down. Guar prices could remain stable at lower level and no major fall in prices have noticed.

Guar gum split & Guar gum powder are exportable commodity and major portion is exported to USA. There was also some uncertainty in USA about coming president but now it is clear after the USA presidential election. Demand of guar gum will remain positive during Trump era. Trump will support fracking activity and keep USA self-sufficient in oil production. New contract of guar export will be signed and shale oil will remain competitive to gulf oil.

This year guar production was lower than last year and demand of guar seed will rise with growing export. Most of guar seed which is stocked in ware house was stocked at higher than 4500/100Kg level.  Stockist will minimize the loss and they will release guar slowly and slowly toward 4500/100Kg level. We have seen a lot of up and down in guar prices but it is still trying to remain higher than 3200/100Kg level. Guar gum prices are also under pressure but it is maintaining the level higher than INR 6000/100Kg.

Try to avoid selling at lower level, prices of guar seed and guar gum will not go below INR 3200/100 kg and INR 6000/100Kg.  Major peak arrival has stopped now. Supply of gaur seed will be very tight in market. It will remain tight up to next harvesting in October-2017. Demand of guar korma is also good and It is giving support to guar prices at lower level. Currently prices are under advance selling pressure but it will be hard to sell at lower prices for stockist and traders.

Prices of other commodities have fallen but guar is firm at its lower level. Crude oil prices are also growing and it is above USD 50/barrel. Export of guar gum is also expected to rise in coming months.  Guar will also benefit from online transactions. Scenario of guar will change in post Makar Sankranti period. Prices will rise with short supply.

Guar Gum seed Cultivation Consultancy/ Farming Consultancy

Guar is a arid crop grown in Western Part of India. Botanically it is known as Cyamopsis tetragonoloba.  This area is arid area and rainfall is very low. Guar crop is grown here since centuries. Guar seed is processed into Guar gum powder which is used in many industries. In Portuguese guar gum is known as "Goma De Guar" in Spanish it is known as "Goma de Guar". In Germen it is Known as "Guarkernmehl". In French it is Known as "La gommede guar". In Russian it is known as  "Гуаровая камедь". In greek it is known as " κόμμιγκουάρ ". In Swedish it is known as " Guargummi ". In Chinese It is known as "瓜爾豆膠 " In Italian it is known as "Gomma di Guar". In polish it is known as "Guma guar".

Guar is a annual legume crop. It is cultivated in low water condition and well drainage soils for good root development.  Guar is a nitrogen fixation crop. Guar is also used as green manure. Green pos of Guar is used as vegetable purpose like other beans.  Guar plant  is good fodder for cattle. Cooked  Guar seed is used as concentrated for milking cattle's. By product of guar seed processing is known as Guar meal, Guar korma. There is 50-56% protein in Guar Korma.

Guar gum seed is an industrial crop. Guar gum power is used in many industries. Guar gum is used in many food application as  viscosity  agent. Guar gum is also used as stabilizer. Guar gum is widely used in sauces, ketchup, Juice, ice cream , biscuits, Gluten free cooking and many more . Guar gum is  used in printing industry as moisture retention in Ink. Guar gum is used in paper industry. Guar gum is used in textile industry.

Guar gum is widely used in cosmetic items, shampoo, moisturizers, liquid shop, lipsticks and many more. Guar gum is widely used in pharmaceuticals industry as binding agent , viscosity agent. Guar gum is  used as dietary fibres. Guar gum used in fish and meal industry. The major application of guar gum is in oil and natural gas industry. Guar gum is used as drilling chemical in Oil and Natural Gas Industry. Around 60 % demand arise from oil and Natural Gas Industry.

Guar gum is very good agriculture crop and Guar gum is beneficial at every stage, green stage is used as green manure, Green pods of Guar gum are is used as vegetable, Guar gum Seeds is used as cattle concentrate,  We provide complete solution for Guar gum and Guar gum seed cultivation and guar  gum seed processing, with complete market intelligence and product information.

Guar remained stable even arrival is increasing

Guar remained stable but it dropped at weekend with increased arrival. In this week Guar remained around 3500.  Arrival of Guar seed in increasing from guar producing belt. Market is in buying mode and prices are stabilising at current level.  There is also additional pressure of contract settlement in October month. 

Maturity of crop.

Crop has matured in most of area and farmers are harvesting it. No rainfall has noticed and that is good for crop drying and maturity. Harvesting has completed in irrigated belt. Farmers in rain fed belt are still harvesting manually. Before Diwlai most of harvest will be completed and cropping cycle will finish. Arrival will keep increase up to Diwali and it will remain peak arrival up to 15th November.

Stocking

Stocking activity has  started with the increased arrival and it will keep going full-fledged up to December. 50 % of arrival is coming markets for selling and 50% material is diverting to stockist through small village level traders. This year estimated production of Guar is around 80 Lac bags.  40 -50 Bags bags of material will be stocked up to November. Current prices of Guar are good for long term stocking for 6-12 months. There is no any major chances of prices fall. 

Crude oil is improving

Crude oil is maintaining its level above USD50/ barrel. It is good for Guar industry. A long term stability will give support to Guar gum prices.  Guar gum prices will further give support to guar seed prices.

Estimate of crop

As per information coming from different sources. Estimate of guar crop will remain below 1 Crore ( 10 Million)  bags this year. A tentative estimate is coming around 80,00,000 Lac ( 8 Million)  bags. Total Guar gum industry will depend on this arrival up to October 2017. Since It is a monopoly crop of India and there is no any other source of guar production globally except small portion from Pakistan. 

End of October contract in NCDEX.

October contract will finish on 20th October and there will be some settlement pressure on Guar prices with increased arrival in physical market. Its will settle between 3400-3500 level. 

Price movement.  

Physical arrival has increased in market and there will be some pressure on prices but due to low production and strong buying prices will remain stable around current level of 3400/100Kg.  With peak arrival prices will remain around the current level.  Prices of crude will give further support to the guar gum prices. 

There are no any chances of Major gain before Diwali. After Diwali arrival will slow down and prices will move upward. If all the factors remain positive, then November contract will settle around 4000 /100Kg of more. It is good time and Good price for physical stock. There is also news of increase in export of Guar gum powder during last month.  

Guar seed and guar gum is moving upward with returning Monsoon

Monsoon has about to return with in one-two days. There is no rainfall in rain fed belt of Guar cultivation. There is more loss in late sowing crop. Late sowing crop is facing the heavy scarcity of water. Right now there are no chances of rainfall crop will damage on large scale. Farmers who opted gaur cultivation in last stage are facing the drought condition.

There can be some profit booking in short term but in long term guar will recover very fast. Arrival of gaur will depend on prices of Guar. It will be very hard for traders to source guar at current level. Stocking of guar will start with initial arrival and prices will go up. After the stocking prices will move with tight supply. Supply of Guar will be very tight up to next production in October - 2017.The opening of Gaur will again up in next week. Forward contract will give additional support to Guar.

Guar prices were down due to prediction of large cultivation; Production related predictions has been stopped now. Prices will move up with loss related predictions and conditions. Situation will clear by the end of September.

Guar seed and Guar Gum market is in buying mood

Market has come in buying mode. Prices are moving very fast in the forward market. Physical market is in selling position. More and more commodity is coming in market above 3500 level in fear of fresh arrival of crop after two months. All the stack holders in industry are denying the govt data of Guar cultivation. This weak is very critical for the growth of crop and growth of guar rates. If there will be no rainfall then crop will damage in large geographical area and production estimate will drop down to 40% of current estimates.

Guar is very sensitive commodity with respect to demand and supply. Due to long self-life of seeds and longer storage capacity farmers choose to sell guar as last option. This year Pulses will come in market first then Guar will come in market. In irrigated area, most of farmers sell the gaur to traders against the advance, which have given by traders on credit during cropping period. As per crop cycle this is not a demand period. Demand will start after December and January. The peak arrival period will start after 15 Days. Market will run after the December.

Guar seed and Guar gum recovered from lower level.

In the starting of week Guar seed and Guar gum declined to very low level. Guar gum reached to 6000 level and Gaur seed reached to 3300 level with lower circuits due to increased cultivation area and good rainfall. But it recovered from its declined level and sustained to last level of 3500/100Kg for Gaur seed and 6500/100Kg for Gaur gum powder. Market is getting some stability.  

Monsoon will be returning back

Rainfall has slow down. There is no news of fresh rainfall. As per weather prediction Monsoon soon will returning after 5th of September. There is no news of damaged on crop due to heavy rainfall in a large area.  Early sowing crop will not require another rainfall and it got rains on all the major critical stage of Sowing, crop development, flowering.  It is at pod formation stage and there is sufficient moisture for maturity and crop will start mature by last week of September and it will dry is October. At the last of October, it will ready for Harvest. For late sowing crop this is very critical stage. It will require another lot of rainfall for the crop development and flowering, if there will be no rainfall in next 15 Days then there will be crop damage in late sowing crop. The loss can be up to 40-50% on large area. 

Disease and Insect Attach

News of insect and pest attack has started to spot. There is news from Bikaner and Hnumanagrh area that leaf spot disease has started to emerge with growing temperature and moisture. If the prices of Guar will remain low, then investment on plant protection be low and crop production will be loss. Most of guar crop is repeated crop on same plot on guar cultivation area so there are more chances of disease outbreak. This year there is more humidity so there are more chances of disease attack.

Speculators are moving out from contract.

Last week and in this week there were continuous three lower circuits and most of people who were doing speculative trading has faced heavy loss. Some people made the selling positions at lower level they are also in fear.  Genuine investors are still stuck with their positions.  This week most of agriculture commodities were under selling pressure and there was huge loss to speculative trading. It will very hard for them to re-enter in this trade.

Sowing of Guar

As per data released by the different Govt. Sowing of Gaur has reached to 32,00,000 Hectare.  Right now no final figure has released. It expected that it may further improve. Rajasthan Govt released last data on was 22nd September,2016.  The final estimated data will be compiled after release of final figure by all state Govt of Rajasthan, Haryana and Gujarat. 

Demand is stable 

Export demand of Gaur gum powder is stable. Right now it is around 30000 MT/Month or 1000MT per day.  That is equal to processing of 3450 MT guar seed per day (with 29% gum recovery). In this way there is annual requirement of 12,50,000 MT of Guar seed. Which is 2,50,000 MT higher than current production of 10,00,000 MT of guar seed.

Crude is Volatile 

Crude oil is highly volatile at this time but is moving in between 40-50 USD/MT. It is expected that crude will improve by the end of this year. If crude improved more than 60 USD than it will give a support to Guar prices and guar may touch the level of 5000 or more.

Current movement

Prices will stabilize in next week. It will more toward 4000 level. With some news of crop damage prices will keep improving.  At lowest level 3000 level is stable. In normal business prices will keep moving around 3500 level. With some positive news prices will reach around 4000/100Kg in this Month.  We may see some fall in Churi Korma prices. Falling Churi Korma prices will lead to improvement in the Guar Gum prices.