Mumbai, July 7 (Commoditiescontrol) Guar seed and gum prices are seen under pressure since last month amid weak demand and slow progress of monsoon which may force farmers to cultivate guar due to delay in the sowing of other crops, said a market expert on Wednesday.
Prices of guarseed and guargum have dropped over 3.5 percent in seven straight trading sessions at local bourse following which spot prices also remained in lower range.
Ajay Kedia, Director, Kedia Advisory, said weak monsoon would force farmers to sow guar seed. In fact, guarseed requires less water and cotton area in Rajasthan remained much below the target, therefore, farmers may grow guarseed in the remaining areas. Besides, demand for guar seed and its products are very week, that’s why prices are down.
“US crude production didn’t improve much, that’s why demand for gum is weak as gum is mainly used by the crude oil producers of the US, said Kedia.
However, sowing was previously expected to fall as prices of the competitive crops grown in kharif season are attractive, he added.
At National Commodity and Derivatives Exchange (NCDEX), guar gum for current month delivery was trading at Rs 6,178 per quintal on Wednesday, down Rs 55 or 0.88 percent from the last session, but it was down by Rs 242 or 3.76 percent from the its closing at Rs 6,420 on June 29, 2021.
Guar seed for delivery in July was trading at Rs 3,962 per 100kg, down Rs 27 or 0.68 percent from the last session, but prices have declined by Rs 149 or 3.62 percent from 29 June when guar seed contract closed at Rs 4,111 per quintal.
Guar seed prices were quoted at Rs. 3,800 per 100kg in auction at Sriganganagar market in Rajasthan while all paid rate was at Rs 3,800/100kg.
Guar seed traded at Rs 3,750 at mandi Adampur in Haryana where arrivals were 300 quintals.
As per the IMD, the southwest monsoon is likely to advance over remaining parts of west Uttar Pradesh, some more parts of Punjab, Haryana and Rajasthan and Delhi around 10th July.
The monsoon has not progressed further since June 19, after a good spell of rains in the first two and half weeks of last month.
(By Commoditiescontrol Bureau: +91-22-40015505)
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