The Hindu Business Line : Weak trend may prolong in guar seed spot prices

Guar spot prices at major trading centres - Jodhpur and Bikaner — have declined sharply by Rs 150 or 10 per cent to Rs 1,560-1,570 per quintal in just one month as daily inflows have peaked, market sources said.

Guar seed January 2005 contracts at the NCDEX have also declined significantly by Rs 250 to end at Rs 1,709 per quintal on last Saturday, from Rs 1,970 per quintal as on October 21, 2004, first day of the contract.

"Fresh inflows began in October-end; and now, it has peaked to 30,000-35,000 bags daily but buyers are limited," a trader said.

"Fresh buying from processors and stockists is limited. Majority processors are procuring seeds as per their prompt requirements while stockists are buying limited quantity because quality is below average. On the other hand, export demand is also slow due to dollar weakness," a leading trader at Jodhpur said.

"At present, export enquiries are extremely limited due to currency factor. Foreign buyers are adopting wait-and-watch policy as guar gum prices are on decline," exporter said.

In last one month, guar gum spot prices at the Jodhpur market have declined sharply by nearly Rs 400 or 8 per cent to Rs 4,370 per quintal on Monday on restricted export demand.

"Prices may rule weak in view of good carryover stocks, limited local and export demand and continued inflows," a broker said.

New crop is estimated to be around 35 lakh bags in Rajasthan, as per trade estimate,

India accounts for 80 per cent of the total guar produced in the world. Around 70 per cent is cultivated in Rajasthan.

Apart from Rajasthan, it is being grown mainly in Gujarat, Haryana and Punjaband also in some parts of Uttar Pradesh and Madhya Pradesh, NCDEX sources said.