Guar Gum: No Recession in Sight Despite Recent Decline
Guar Gum Prices Fall in Jodhpur Market
The price of Guar Gum in Jodhpur market fell by $0,042 per kg due to a drop in industrial demand. Despite this, future declines seem unlikely. Over the past month, Guar Gum prices have decreased by $0,036 per kg, bringing the current price to $1,26-$1,27 per kg. Simultaneously, Guar prices fell by $0,012 per kg, making the current price $0,65 per kg. Speculator selling, prompted by the expectation of a normal monsoon, has led to a bearish trend in Guar Gum futures for June delivery on NCDEX.Speculator Selling Influences Guar Gum Futures
Increased speculator selling has caused a significant decline in Guar Gum futures prices on NCDEX. Guar is primarily produced in Rajasthan, Haryana, Gujarat, and Punjab, with over 70% of production in Rajasthan. This season, production has decreased to around 6 million bags, compared to 8-8.5 million bags last year due to reduced sowing area and insufficient rainfall. The arrival of Guar in markets has ended, with prices quoted at $0,60-$0,61 per kg.Stable Prices Expected Despite Weak Production
According to APEDA, Guar Gum exports from April to February 2023-24 were around 376,966 tonnes, slightly up compared to 376,114 tonnes in the same period last year. Despite weak production, raw material prices are unlikely to fall further. Both domestic and export demand are expected to rise, indicating no further decline in Guar Gum prices. The market may rebound as soon as demand improves.Despite a recent drop in Guar Gum prices due to weak industrial demand, the market outlook remains stable. Increased speculator selling and fluctuating crude oil prices have influenced the market, but future declines seem unlikely. With production insights and export data showing steady demand, the market is expected to stabilize and grow as demand improves.
