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Subdued Tone Prevails In Spot Guarseed/Guargum On Slow Demand

7 Dec 2017 4:09 pm
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MUMBAI (Commoditiescontrol) - Subsued tone prevailed in Guarseed and Guargum due to lower than expected export demand, weak cues from futures despite of dwindling supplies in the spot markets.

Guarseed prices declined by Rs 50 at Rs 3,775/100kg at the benchmark Jodhpur market, whereas Guargum edged down by Rs 100 at Rs 8,550. Similarly Guarseed traded at Rs 3,750, down Rs 50 at the Bikaner market with Guargum priced Rs 100 lower at Rs 8,450.

Declining export of Guargum in the recent months has mainly raised concern buyers and prompted them to slow down buying as further rise in prices unlikely untill and unless it don't revive, said a trader from Jodhpur.

Guargum exports during August, November and December stood at 40,657 metric tonnes (MT), 34,414 and 29,327 metric tonnes, according to APEDA data.

There is ample stocks of Guarseed in the country and the current pace of export is unlikely to help to get rid of it easily, he said.

Earlier in October-November there was good demand from arbitragers due to difference in spot and futures price, but it has narrowed, which has propmpted them to stay on the sideline, said a trader from Sri Ganganagar.

Stockists demand is poor as they have already sourced sufficient quantity from this year crop. Also they are holding stocks of previous crop as well , which was procured at the higher rates. Due to slump in prices stockists didn't sold those stocks and still holding, he noted.

The only positive thing is rising US rig count data, which rose third straight week, other wise many data and reports are negative for Guarseed and Guargum., he added.

Crushers demand at present is hand-to-mouth as export inquiries are not very impressive to push them for bulk buying, he said.

On derivatives, the most active January Guarseed dropped 1.41%, or Rs 55 at Rs 3,844/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). Guargum January delivery futures eased 1.45%, or Rs 126 at Rs 8,546.

(By Commoditiescontrol Bureau; +91-22-40015533)

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