Guar and guar gum weakened with falling crude oil price

Last week was very good for guar seed and guar gum prices but in this week prices of guar seed and guar gum has fallen with falling crude oil prices. That is just a sentimental factor. USA and OPEC have increased the crude oil production before the sanction on IRAN. Increase in production of crude oil will continue so that countries can cut the oil import from IRAN and supply of crude oil can be normal after sanction on IRAN. Oil production in USA is based on fracking technology and guar gum is used in fracking technology. 15 OPEC countries produced more than 33.3 million barrel per day of crude oil in October month which is highest after month December-2016. Crude oil prices are fundamental factors for guar seed and guar gum industry, but it should not be considered same in all situations. Currently crude oil prices are decreasing due to increased oil production. Demand of crude oil is still very high. 

Guar in not a single used commodity. Guar is multi use commodity. Future demand of guar gum may arise from any industry. Oil and Natural Gas industry will keep using Guar gum in crude oil production. There is trade dispute between USA and India. Recently USA has removed 50 Indian products from duty free GSP list most of them are agricultural products. Demand of Food grade guar gum is regular. Prices of Guar Churi/ Guar Korma is good and it is maintaining the higher levels. 

This year production guar seed is estimated lower than previous years. Marketman are estimating the production of guar seed around 60 - 70 Lakh (6-7 Million) bags (100 Kg each). That is insufficient for current year demand of guar seed. Demand of guar seed will remain weak in this week due to Diwali season. Guar gum processing factory staff will be on Diwali holidays. Arrival of guar will be also poor as farmers are busy in festival. Guar seed and guar gum Business activities will increase after Diwali week (after 11th November). Supply is still poor in market. Speculators are active in market. Keep hold on physical stock and positions of guar and guar gum . Guar seed and guar gum prices will bounce back with increased business transaction. Volume of November transaction is coming down but volume of December month contract is increasing in commodity market that is good sign. 

Guar seed and Guar gum commodities are being quoted weak in local markets due to falling prices in commodities markets. Prices of Guar seed and Guar gum both are quoted weak. Future trading of Guar seed and Guar gum are also weak due to falling crude oil prices. Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4500/100 Kg. Standard quality guar gum is traded at Rs 10300/100 kg. In interior location, guar seed is traded up to 4300/100 Kg. Guar seed is being traded downward in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT closed at Rs 4548, 4635, 4693 lower by 0.07 percent or INR 3/100 Kg, 0.02 percent or INR 1/100, 0.07 percent or INR 3.5/100 Kg with open interest of 66020, 104260, 6430 for November, December and January month contracts. 

Guar gum is also being traded weak in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being closed at Rs 9920,10080, 10200 lower by 0.14 percent or Rs 14/100Kg, 0.12 percent or Rs 12/100, 0.42 percent or Rs 43/100 with an open interest of 17980, 58580, 1135 for November,December and January month contracts.

Guar seed and Guar gum prices will remain strong with strong buying

During last week there was upward price movement in guar and guar gum prices due to poor arrival of guar seed in market. Stockist and processing industries are regularly buying the new arrival of guar crop in large quantity. There is news that guar crop has damaged due to heavy rainfall in irrigated areas and it has also damaged in rainfed area due to poor rainfall. There are initial predictions that arrival of guar crop will be remain tight. As per market men arrival will not improve in next 2-3 weeks due to poor arrival during Diwali festival period. There is Diwali on 7th November, a major festival in India. Upward prices movement in guar gum seed was noticed yesterday after the opening of business in future market for the current week. Price of guar is quoted high in local physical markets or grain mandi. Trade of guar seed in local market is being done at higher prices. There was no impact of down ward price movement in guar at commodity exchange on last trading day of last week. Trading of guar in physical market was unaffected with downward price movement.

Prices of guar gum is also strong with guar seed. Guar gum prices are showing upward price movement with increase in number of oil rigs in USA and increase in crude oil production. There was significant upward price movement in prices of guar gum during last week. Prices of Guar gum will also remain positive in this week. If the processors get good prices of Guar meal /Churi / Korma then prices of guar gum may be quoted low. Export data of last month has not been released by govt till now.

Guar seed and Guar gum prices will remain strong with strong buying 

Prices of guar seed and guar gum will remain strong in this week. Farmers will carry their produce in market slowly and slowly, stockist and processors will continue to buy their produce. Prices of guar are strong and keep increasing even with arrival of new guar crop with poor quality, black seed and more moisture. Keep the position strong in physical stock. Arrival of guar seed will be poor in Jodhpur region due to damage in rainfed guar crop. Prices of Guar will remain above Rs 4500 /100Kg. Guar is being traded at higher prices in commodity or future market for next month’s contracts than the current month contract. Farmers should avoid carrying their complete produce in market in one lot. If the arrival will increase then it would put pressure on guar seed and guar gum prices.

Demand of guar gum will increase, with increased crude oil production.

As per the Backer Hudges 4 new oil rigs of crude oil production has added in this month in USA. Currently 1067 oil rigs are functional in USA which are 154 higher than previous year. This is good news for Indian guar gum industry. Consumption of crude oil in Chinese oil refinery is increasing. Consumption of guar gum will also increase with new fracking activities.

Arrival of guar gum is increasing in local markets. Stockist are buying guar in bulk. By the end of this month good arrival of guar will start from rainfed area. Speed of arrival of guar from rainfed area will be limited as farmers of rainfed area can hold guar for longer time in comparison to farmers of irrigated area. After the harvesting farmers from irrigated area clear their old credit and buy the farm input for new crop, so they can’t hold the guar crop for longer time. Colour of guar seed has turned black in irrigated area due to rainfall in last period of crop maturity.

If the prices of guar remain good at arrival of guar crop in market then it will boost the guar seed and guar gum prices during rest of year. Export of Indian guar churi korma can increase to China because import of soya protein in China has decreased from USA due to some trade dispute. If export of Indian guar churi korma increases, then guar prices will get good support in local markets. 

Prices of guar gum is also good with prices of guar seed. Guar gum is an export demand driven agriculture commodity. Guar is consumed in local markets, but guar gum is consumed in international markets. If arrival of guar seed remains tight in local market, then prices of guar seed will reach near to Rs 5000/100Kg around Diwali.

Guar seed prices are increasing in peak arrival period.

This is arrival period of Guar seed in guar growing belt. Generally, with the starting of October month, price of guar seed start to fall due to peak arrival period. But this year price movement is totally in different trend. As per market man actual guar seed production seems to below the estimated guar seed production during cropping period. First arrival of Guar seed production from irrigated guar growing belt is of very poor quality. Generally, Haryana side guar is considered as good quality guar seed. As pictures of Guar seed shared by some traders from Haryana it can be observed that quality of guar seed arrival in market is very poor. It is totally black in colour. Even after poor quality traders are buying the black guar with regular guar seed prices.


Prices of Guar seed are under pressure since last three - four years. With opening of guar seed prices around 4300-4500/Kg for the current harvest season, is good start. Even if prices of guar seed remain same at current level of 4500/Kg during whole arrival season then it will give boost to the prices of guar seed during whole year. With current guar seed prices, prices will touch to 6000 level during current production cycle. Other major kharif commodities are covered under the MSP. Guar don’t have any boost of MSP. It is demand driven commodity. Production factor has almost completed for guar seed will not change for next 9 Months. Now the complete guar seed prices movement will be only on demand basis. 

Guar is an industrial commodity which is used in many industries, Major part of guar is used in oil and natural gas industry. During last week oil prices were on boil. There were many geopolitics blame game that USA wanted Saudi Arabia to control the oil prices by increasing the oil production. Saudi Arabia refused to do so. After that USA oil companies increased the production and prices of crude oil has little bit come down. There is possibilities that fracking activities will increase in USA, with upward crude oil price movement. 

Guar seed and Guar gum commodities are being quoted at higher prices in local guar trading agriculture market . Prices of Guar seed and Guar gum both are quoted high. Future trading of Guar seed and Guar gum are strong due to tight arrival and agressive buying. Good quality of guar seed is traded at Rs 4500/100Kg and average quality guar seed is traded at Rs 4200/100 Kg. Standard quality guar gum is traded at Rs 9500/100 kg. In interior location, guar seed is traded up to 4100/100 Kg. Guar seed is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT closed at Rs 4543, 4608, 4672 higher by 3.2 percent or INR 141/100 Kg, 2.89 percent or INR 129.5/100, 2.68 percent or INR 122/100 Kg with open interest of 103480, 22870, 150 for November, December and January month contracts. 

Guar gum is also being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being closed at Rs 9800, 9920 higher by 3.09 percent or Rs 294/100Kg, 2.96 percent or Rs 285/100 with an open interest of 60365, 9390 for November and December month contracts.