Guarseed Likely To Drop On Weak Exports.

Sideways trend was noted for Guar last week as traders awaited the Monsoon progress reports and reports on the export front.

Latest predictions do apprehend possibility of monsoon arriving on time in the growing areas in Rajasthan and this could have beneficial impact on the production front for the commodity.

Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices. The trend is likely to remain volatile in short term depending on the demand and arrivals in the mandis.

Moderate export demand continued in the mandis. Rise in export queries from U.S & China from Oil and Gas Companies in coming weeks are likely to support prices. Good demand from millers and stockists there. Processors are regularly buying Guarseed for exports.  Low stocks of Rs 2-3 lakh tonnes reported.

As per reports from Rajasthan farm department, output for Guarseed is estimated at 149 lakh bags (14.9 lakh tonnes) vs 45 lakh bags (4.5 lakh tonnes) the previous year. The exports are expected to rise to 2.6-2.8 lakh tonnes vs 2.1 lakh tonnes last year.

As per Apeda, exports of Guargum from India moved up by 82% for the period April- December 2010 and stood at 2,79,197 tonnes as compared to 153404 tonnes during the same period last year.

Source : commodityonline.com