Global Uncertainty Dampens Sentiments Of Guar Complex, Down Fall In Seed, Gum

NEW DELHI (Commodities control) Guar seed and gum prices remained under pressure in spot market of Rajasthan, Haryana and Gujarat as spot gum demand was not encouraging. Bearish trend in future contracts also dragged spot prices into red zone. Entire guar complex was facing uncertainty about export demand amid unpredictable global scenario.

Guar seed prices have recorded heavy losses in mandis during auction trading. Auction prices fell down by Rs. 70 to Rs. 3600-3781 per quintal in Adampur mandi of Haryana. There was little decline in upper range of auction prices in Rajkot, Sriganganagar and Bikaner. But lower price range fell down drastically. Normally, down fall in lower prices is considered as lowering pricing due to poor quality. But today’s fall was considered as reflection of poor demand.

According to market sources, guar gum split millers were uncertain regarding demand so they were reluctant for fresh buying. Market worried for export demand so powder makers remained absent from the market. Lower crop size and below to average arrival was unable to improve market sentiments due to worries from demand side. Total arrival was estimated at 20,900 bags on across the region. Current arrival was considered below to average but buyers were absent. A trader said that crude oil prices were not falling too much but current economic scenario and sentiments of energy market were not encouraging for guar complex.