Weekly: Spot Guarseed/Guargum Continues To Record Good Gain

MUMBAI (Commoditiescontrol) - Spot Guarseed and Guargum after strong gain last week, has continued upward march at the benchmark Jodhpur market of Rajasthan this week ended Friday (Jan 29-Feb 2) supported by better demand from the crushers and traders. Guargum performed better than Guarseed this week is an indication of strong underlying demand, which is a good sign.

Guarseed prices rose by 2% at Rs 4,700/100kg this week at the key Jodhpur market, whereas Guargum posted good gain of 4.2% at 10,290.

Guarseed arrivals during the week stood at 89,000 bags (100kg each), up from 87,000 bags a week ago.

Guarseed arrivals in the country during the first four month (Oct-Jan) of current season 2017-18 dropped 2.40% at 36.55 lakh bags (approx 100kg bag each) against 37.45 lakh bags same period a year ago, according to a data collected from various industry participants.(Full Report)

Lower arrivals of Guarseed during the season was attributed to poor production this season led by slow farmers selling as they are bullish about the commodity, said a trader from Bikaner.

Crushers demand is said to be good due to good export inquiry in Guargum from overseas, mainly from U.S.

India Guargum (including Guar split/Guar meal) export rose 42.01% at 321,570 metric tonnes during April-November 2017 compared with 226,431 metric tonnes same period last year, according to Agricultural & Processed Food Products Export Development Authority (APEDA).

Export of Guargum have shown incremental trend due to strong rise in crude oil prices and U.S rig count.

Crude oil prices rose over 7% during the last couple of month. Similarly, U.S rig count increased to 729 on Feb 2, 2018, compared with 658 on Dec 29, 2017.

Guar gum -- a white powder derived from guar beans—is widely used to recover oil and gas due to viscosity in nature.

Industry Eyeing December Guargum Export Data
Industry people are now eyeing release of Guargum export data, as future course of market trend is heavily depending on it. APEDA is likely to release data next week.

Good export data may provide a much-needed catalyst to Guar market to push prices further higher from present level.

Guarseed and Guargum prices may trade positive next week, but December export data will be a key factor to watch out as it will set future market direction.

Futures Outlook
Guarseed March contract rose this week by 1.89% to settle at 4,768/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract hovered between Rs 4,595 to 4,800. Volume and open interest were on the incremental side during the week indicating addition of fresh long position.

For Spot Guarseed Technical View (Click Here)

Likewise Guargum March futures 4.17% and settle this week at Rs 10,540/100kg. The contract moved in the range of Rs 9,860 to Rs 10,625. Volume and open interest have doubled this week along with good rise in prices is showing positive trend likely to continue ahead.

For Spot Guargum Technical View (Click Here)


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