Traders Were Cautious Despite Gains In Guar, Gum, Disparity Discourages Production

NEW DELHI (Commodities control) Guar gum and seed prices gained today in spot market of Rajasthan, Gujarat and Haryana. Market sentiments in spot trade improved due to gains in futures trade. However, traders remained cautious for fresh buying as they do not seed clear upside trend. Spot demand was still worrisome factor for the commodity.

Guar gum improved Rs. 20 to Rs. 6010 per quintal in Jodhpur as gum future contracts gained slightly in NCDEX. Guar gum powder also inched up in Jodhpur. But total gum trade was still thin as powder makers were cautious for fresh buying. They do not see overnight improvement in export demand.

Guar seed prices also increased in majority of mandis as seller were keen to sell on higher prices. Millers also increased their buying prices by Rs. 35 to Rs. 3780-3860 per quintal in Jodhpur. Guar seed gained up to Rs. 50 per quintal in various mandis in auction trading. However, trade was not very encouraging.

Traders were cautious on price gains in spot market as spot demand was still weak. A trader from Rajasthan commented that price gain raised market sentiments. But current prices are so pretty to off load the stocks. Traders still find current prices as unattractive. A broker from Jodhpur said that spot market was influenced by futures sentiments which has no connect with fundamentals. Current prices of gum, korma and choori were not profitable for gum millers so many millers have already halted production. Guar Choori prices came under pressure as cheaper cattle feed are being blended so demand came under pressure. Guar choori was traded at Rs. 2700 and korma at Rs. 3825 per quintal.