Guar Gum at Lowest level after December 2010

Guar gum has slide down at lowest level after December 2010.  Yesterday the rate of Guar gum in Jodhpur Market was below INR 6000/100 Kg, which was at lowest level after December, 2010. Prices of Guar Seed has also slide down below 3200 In Local Agriculture market of Jodhpur and Ganganagar.

More that 70% Guar gum is used in Oil and Natural Gas industry. Prices of crude oil is also at lowest level.  Demand of Guar Gum has slide down drastically from Oil and Natural Gas Industry. It is peak time of Energy demand but prices are lowest level. There are no any chances in recovery of crude oil prices till next winter  ( November,2016  to March- 2017).

Pressure from crude prices will always reflect in  Indian Guar Gum Industry. Lean period in Indian Guar gum industry will keep going up to 2017. 

It is very critical time for new industries. Most of new plants are closed.  It has become very difficult to recover the processing cost even for old plants. Physical stocking  is main loss making activity for the industries.

Farmers are in demoralized with this price of guar gum.  Some farmers have stock for two three years , they are in heavy loss.  Industry need some new initiatives in R&D and exploration of new market except Oil and Natural Gas Industry.  Dependency on Oil and Natural GAS Industry Must Come down below 50 % for sustainability in Guar  Industry.

Guar seed and guar gum is improving with rising Crude prices.

Guar is improving after a consistent rise in crude prices during last week. Crude prices are improving regularly. It is giving strength to guar prices. Guar seed improved by Rs 100 and guar gum by 300 Rs in local physical market. It is also improving in future market.

Energy prices in international market are giving strength to guar prices. Buy if energy price keep moving downside in international market then it may further crush but if happen up side then Guar prices may cross the level of Rs 10,000 for guar gum and RS 4500 for guar seed with in march contract.

Guar Seed and Guar gum cultivation in India- Guar Agriculture Farm.  

It will give double strength in next month as gaur supply from farmer will almost stop for two month and at rising price supply will very tight in trend of more margin making.

Pictures will more clear after crude will cross the level of 70 USD/barrel right now crude is being moving around 61 USD/barrel.

At rising price all entire stack holder will hold the commodity but if prices goes down then ever one will release the commodity.