Guar: Slowly create an atmosphere of rapid growth in demand
August 9, 2017 at 8:34 AM ,
Rainbow Exports
Slowly create an atmosphere of rapid growth in demand ....
The demand for Guar and Guar gum has started increasing gradually and the crop is very low in desolate areas. Given these conditions, this time prices of new crop is not expected to decrease in guar and before arrival of new crop, there is an increase of US$100 to 125 per mt. before the new arrival starts.
According to the survey report, the old stock has not sold much by big traders and exporters. At the same time 90 % stock of small businessmen, traders and exporters have sold. Guar sowing has been done in all the producing areas like Badmer, Bikaner, Hanumangarh, Mahendragarh, Sriganganagar, Jodhpur etc. At present, there is an estimated production of 7.0-7.5 million bags, which will be 2 million bags more than last year. But last year production was higher even though in addition to that total 10 million bags were carry forward stock in the market. The old stock was close to 15 million bags. In this way, total production will be closer to 15 million bags. Due to this high inward and stock could not able market to rise up or go up. All this material did not allow the market to rise throughout the year. This time, the stock will not remain high after the arrival of the new crop and the exports from India. Moreover, Indian Gum exports costing in international market is much competitive and lower side due to that shipment has started since last fortnight.
In the market yards of Rajasthan and Gujarat, prices are running at US$540 to US$555 per mt. In the Hanumangarh Mandi, there was a trading of US$571 to 578 per mt. In the Jodhpur mandi, a tax paid US$605 was heard in the trade. In this way the markets have started moving towards strengthening. New crop pressure will be made in December, before that some goods will come in October also. Which will not affect the market arrival presser.
Significantly, guar prices started to come down from November-December of the year 2011 and till 10th of 2012, the prices have remained 10% from the highest rates. In the bottom, it has also seen US$420 to US$440 last year, which has gone up and down by US$140 to 160 per mt. The demand for gum has started increasing gradually and almost the merchandise of small speculators has been sold out their stock. So, there will be increase of US$30 to 40 per mt. till next week and in this way, the traders are expecting to increase to US$100 to 125 per mt. this month.
Everyone is in dilemma and there is suspense, what will happen in Guar-Gum now?
The weather is going to be good in coming week but that is not going to affect the market and bring the market much down. Now, for the last 3 to 4 years, there is a difference in the situation of Garar this year, 70% of old goods has been sold in the last 3 to 4 years. Not much stock left in the pipelines and market.
This year, the area of Gawar sowing has decreased considerably where large scale sowing was done i.e. Haryana, Ganganagar, Bikaner or Gujarat. The seeds where it has been grown (places of sowing) in the area of Bikaner, Nohar, Hanumangarh, they need to have one shower/rain in the coming week.
For the last four years this year, the decrease in the carry over stocks and the export demand will be good this year will going to be reason of prices higher in coming year.
According to our personal opinion, Guar has rock bottom prices. There is a full chance this year that market will move up.
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