Guar: Breached 2 Years Prices, slowdown in last 2 years, What Next ?
August 24, 2017 at 6:34 AM ,
Rainbow Exports
Guar Breached 2 Years Prices, slowdown in last 2 years, What Next ?
After October 2015, after nearly 23 months, Guar crossed the level of US$625 per mt. In the local market and it is traded above US$625 per mt. There are many reasons behind to rise in Guar.
Rajasthan and Gujarat, Hariyana and Madhya Pradeshh traders has seen this breaking level of US$625 per mt. after two years of heavy down side in the market. Now there is new hope came among them that prices will go up more than US$625 per mt level in the local market and Once gain Guar will be Hot commodity.
Haryana, Rarasthan and Gujarat businessmen and traders were interacted they are not only happy to break the level of US$625 per mt. but this will make the revival of Guar Industries.
Exports data for year 2016-17 were not reported. In the First two qauters in year 2017-2018 exports data shows that Guar has achieved 100% of last year exports. Some different has been seen in the markets this time. Since last two years exports were reduced and due to this reduction leads to down in Guar production and growing areas as farmers didnot get good return.
Rajasthan Agriculture Department official said on condition of anonymity that more rains have been recorded in some areas of Rajasthan and in some areas rain deficiency has also been reported. Unbalanced rains have cooled Guar mood. Authorities also believe that reduction in Guar production can be recorded. The way in which Guar was produced In the last few years, we were able to see around 20 million bags and in the current season, in the surplus markets neither the production is getting much more and neither the availability of stock since last 3 years. The traders did not keep stock on their hands.
The trend of businessmen and farmers is to assume that the figure at Guar production will not be more than 10 million bags this year and the total production of Guar is only up to 8 million bags. On the other hand an official of Agriculture Department says that Guar production could be close to 12.5 million bags However, it is required to go in the details about the government figure as well as real figures when it start arriving to the market.
Traders & Exports feels that if the market will continue to to stay at this higher level i.e. US$625 per mt. then Guar will have trend to go upward and go with faster speed and will cross US$700 per mt. in short time. Buying at lower prices in Guar can give good profit.
View related articles
