Guar Seed and Guar Gum prices declined, due to profit booking at upper level.

Guar Seed and Guar Gum prices declined, due to profit booking at upper level.

Guar seed and Guar gum prices were quoted lower than last closing due to profit booking at upper level. Prices remained under pressure of profit booking for entire day. Since morning prices did not recover. Prices kept declining due to selling pressure. The selling pressure was also seen in the local market. Prices were quoted lower in local physical markets.  

Export demand of guar is not picking due to lower demand form the oil and natural gas industry. Oil and Natural Gas industry is leading demand generating industry. Slowly and slowly demand is generated from other industries also. New R&D is being set up and use of guar gum in increasing. Food Industry will emerge as next buyer of guar gum powder. Application of guar gum in Food industry is increasing. Before 4-5 years guar gum was not available in retail packing for the end customer. Today thousands of products of guar gum are available in retail packing for end customer use. Due to its health benefit property. guar gum is used as food supplement in different form.

                   Guar Seed and Guar Gum prices declined, due to profit booking at upper level.

Guar cattle feed / guar korma churi is Methane-reducing cattle feed supplement. That is good for the climate and animal health. Guar korma / Churi is good source of the digestive protein. Guar korma is balanced nutrition source for the chicken fee, cattle feel, fish meal, animal feed. There is around 35-50% protein content in Guar Churi Korma.

Due to increased supply and stagnant demand currently crude oil prices are also not so strong. High demand of guar gum from oil and natural gas cannot be predicated at this current price level. Currently Brent crude oil is being traded are 77.33 USD/Barrel, and WTI crude oil is being traded at 72.28 USD/barrel. OPEC is trying to capture its position in world crude oil market. OPEC owned OPEC Fund is investing USD 1.7 Billion for international development in global climate change and energy transition. As per Baker Hudges global rig counts data there are 64 more active rigs count then previous year in this week USA.

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 stable due to stagnant business at current price level. Good quality of Guar seed is traded at Rs 5300/100Kg and average quality Guar seed is traded at Rs 5000/100 Kg. Standard quality guar gum is traded at Rs 10200/100 kg. In interior location, Guar seed is traded up to 4700-4800/100 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 5290, 5348 lower by 1.34 percent or Rs 72/100Kg, 1.31 percent or Rs 71/100 Kg with an open interest of 43055, 49595 for Feb and March month contracts. 

guar gum is also traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar gum- 5MT is traded at Rs 10075, 10243, 10389 lower by 1.40 percent or Rs 143/100Kg, 1.42 percent or Rs 148/100 Kg, 1.66 percent or Rs 175/100 Kg with an open interest of 24855, 33085, 140 for Feb, March and April month contracts.

Guar and Guar gum prices will rise with stable crude oil price.

Crude oil prices are stabilizing in the international market above USD 60 / barrel. OPEC is limiting its crude oil production to strengthen the crude oil prices. The share of shale oil production is increasing with increasing crude oil prices. Guar is major Kharif commodity in western Rajasthan. Peak arrival period has been already gone. It is the time for the arrival of Rabi production in the market. Shale oil production is major guar gum consumption process. Guar gum is used for drilling chemical as a gelling agent. It is used to fix the proppant in the shale cracks after fracking process.

Geopolitics conditions are improving. Political stability is coming globally. Industrial production is increasing in China and India. Demand is increasing from both the countries. As per information USA crude oil has reached to Indian Ports. Indian major guar gum production Group company Vikash WSP is entering at next level in the business of drilling chemical.

Another company of Vikash group by the name of VIKAS Granary is entering in the business of manufacturing of proppant in India. Vikash granary has granite mines they want to enter in the business of manufacturing of proppant. Proppant is big coarse size sand particle. This will a value-added activity for guar gum powder export. India will earn more from the export of mixture of guar gum and proppant. 

Guar seed and guar gum are strong in the local market. Guar seed and guar gum are quoted high in the local market. Future trading is also strong since last three days. Good quality of guar seed is traded at Rs 4500/100Kg and average quality guar seed is traded at Rs 4400/100 Kg. Standard quality guar gum is traded at Rs 9650/100 kg. In interior location, guar is traded up to 4300/100 Kg. guar seed is being traded strongly in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is being traded at Rs 4430, 4469, 4515 higher by 0.37 percent or INR 16.5/100 Kg, 0.3 percent or INR 13.5/100 Kg, 0.07 percent or INR 3/100 Kg with open interest of 149810, 41350, 3140 for March, April and May month.

Guar gum is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 9655, 9790 higher by 0.64 percent or Rs 61/100Kg, 0.69 percent or Rs 67/100 Kg with an open interest of 60075, 16520 for March and April contract.

Guar gum and guar seed price will be driven by export demand

Guar seed and guar gum price are moving parallelly with crude oil. Currently, Crude oil prices are the major driver for guar seed and guar gum prices. OPEC is trying to take prices of crude oil toward the upside, but USA shale oil production is enjoying the upward crude oil prices movement. This year international demand for Indian guar gum is also upward. Actual picture will come out with export data of January-18 data will come in market. As per IEA rig count in USA is increasing. The demand of guar will keep increasing with increasing rig count. 

Guar gum and guar seed prices are showing highly speculative movements in February18. Prices have fallen from its three-year peak point in February month. Guar seed and guar gum prices are showing recovery. Speculators are active in the market, so they are putting pressure on price movements. Traders and farmers are positive about major price gain in guar seed and guar gum this year.

Last guar seed price rise was up to 4700/100Kg. There are possibilities that prices will cross 5000 level. New production of guar seed will come after 8 months and the market will in demand condition due to increasing fracking activities in USA. There are strong possibilities that Central govt will increase the MSP of the Kharif pulses as current govt is focused on farmer’s welfare and will give monetary incentives to farmers.

Contract of guar seed and guar gum has entered in March contract as February contract has finished at 4500/100kg, February contract was started around 3700/100Kg, thus February contract finished with 26% gain from its initiation price. Most of forward contracts of guar seeds and guar gum are being traded in March contract. Next 15-20 days will be very important and prices will move upward because the contract will settle around 20thMarch,2018. 

There is the big war between two major oil producer groups OPEC and Shale Oil. Both groups want prices upward. OPEC is trying to cut production to restrict the supply, but US shale oil is enjoying the upward price movement by supplying its crude oil production to major crude oil markets like China and India. The demand of guar seed will also increase with domestic demand of guar seed for sowing in summer / Kharif season in June - July.

Guar and guar gum price remained stable in local markets but trimmed in forward contracts

Guar seed and guar gum price were under pressure of profit booking in forward market. Investors trimmed upper positions for their future contracts. Local markets are stable and strong. Local demand of guar and guar gum is continuing at current prices.  Traders and guar gum powder processor are buying guar and guar gum at lower prices.  In long term guar will get good support from crude oil prices. Crude oil prices are improving with growing rate since last upward trend prices of crude has not come in major downward position. guar and guar gum will regularly be getting support from improving crude oil prices.

Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4400/100 Kg. Standard quality guar gum is traded at Rs 10000/100 kg. In interior location guar is traded up to 4200/100 Kg. guar seed is being traded weak in future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is being traded at Rs 4455, 4616, 4686 lower by by 1.91 per cent or INR 88/100 Kg, 1.93 per cent or INR 91/100 Kg, 1.62 per cent or INR 77/100 Kg with open interest of 129330, 96570, 14020 for February, March and April.

Guar gum is being traded weak in future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 9765, 9890, 10020 lower by 2.55 percent or Rs 256/100Kg, 2.66 percent or Rs 270/100 Kg, 2.93 percent or Rs 302/100 Kg with open interest of 36355, 45155, 255 for February, March and April contract.

Branched type Guar  gum plant

Arrival of guar has reached lower than 20,000 Bags per day. Farmers are carrying small amount of guar commodity to market for their financial requirement. Peak arrival of guar seed period has gone. Arrival of guar commodity to local markets will drop further. Farmers are getting competitive price for their guar at upper side from local traders.

Guar and Guar gum remained strong with demand from factories.

Yesterday of Monday, in starting of new week demand was noticed in local market. Guar prices and Guar gum price are strong due to poor arrival in local markets. As per marketman factories are procuring material by quoting 40-50 Rs /100Kg higher than market price. In Guar growing belt most of agriculture commodities are strong.  Guar and Guar gum price, are stronger with poor production and increased international demand.

Yesterday forward business of Guar seed and Guar gum was closed due to upper circuit in NCDEX. Future contract of Guar and Guar gum for February months was closed at Rs 9587/100Kg and Rs 4410/100Kg. During las month NCDEX guar price and NCDEX guar gum price are quoted lower than physical market.  Guar and Guar gum price are strong in local market. There are possibilities of speculations. Speculators may try influence market with selling pressure.

Prices of Guar will remain strong up to arrival of next crop. Stability in crude oil prices will lead to further strengthen in Guar and Guar gum prices.  New oil well drilling activities are increasing in USA due to higher crude oil prices. Other substitutes of Guar have been developed but they are not effective, and their results are not as good as Guar gum.

Guar gum farming consultancy

Stability in prices of Guar seed and Guar gum after level of Rs 4500/100Kg and Rs 10,000/100Kg is very important. Except Guar gum, Guar Churi and Guar korma are also very strong in market. Animal feed protein prices are also strong due to upward prices of Soybean in international market. Prices of Guar seed and Guar gum will strong in this week.