Bullish trend continues in guar complex as Biden factor increases hope for higher export

NEW DELHI (Commodities control) Guar complex remained positive as downstream manufacturers were buying aggressively. Future contracts of guar gum and seed were also bullish which supported sentiments in spot market of Rajasthan, Haryana and Gujarat.


Today, guar gum trade increased to 1060 MT on strong demand from powder makers. There was hope for better demand for crude oil grade guar gum powder after change in US presidency. In NCDEX, guar gum contracts gained up to 3 percent on strong buying of investors. Guar seed contracts also increased around 2 percent.

Markets operators expected that new US president Joe Biden will discourage chemical usage in crude oil and gas exploration as per his new policy for climate protection. Cheaper chemicals mainly supplied by Chinese companies were main competitors of guar gum powder (fast hydration grade) in exploration activities in all over the world, specifically in US. It was expected that crude oil and gas companies will shift to guar gum so demand will pick up.

Guar gum powder makers were already active for buying guar gum split as they wanted to create sufficient stock for future demand. As per some reports, few gum powder makers already got some order for the same products. Today, 1060 MT guar gum split was traded in across the regions at prices of around Rs. 6260 per quintal in Jodhpur. It was traded at Rs. 40-50 lower than February guar gum contract at NCDEX.

As per market source, guar seed arrival was reducing so guar gum split millers were not getting sufficient supplies. Guar seed arrival was hovering below 20,000 bags per day. A trader from Jodhpur said that if guar gum powder demand from energy sector improves, there will be sharp price rise. Guar seed production was estimated at lower level than last year. So total availability will be limited till new crop in next October. Today, guar seed prices gained up to Rs. 50 per quintal in various markets. Guar gum split millers have also increased their buying prices.