The Hindu Business Line : Guar gum prices increase on weather woes

Guar seed spot prices at the major centres - Jodhpur and Bikaner - have gone up by 24 per cent in just a month on good buying interest amid weather concerns.

Guar gum (refined guar splits) futures prices at the National Commodity and Derivatives Exchange (NCDEX) are also up 25 per cent in past month on speculative buying support against extremely limited selling by farmers, stockists and traders.

Spot price at Jodhpur centre was up Rs 380 at Rs 1,571 per quintal on Monday from Rs 1,263 per quintal on August 2, while spot price at Bikaner centre was up Rs 313 at Rs 1,614 per quintal from Rs 1,301 per quintal quoted on August 2, a trader said.

Guar gum October contracts at the National Commodity and Derivatives Exchange (NCDEX) were up Rs 967 or 25 per cent to Rs 4,835 per quintal on Saturday against Rs 3,868 per quintal on August 3 as speculators step in amid concern over rains.

"There has been no rain in western Rajasthan, after a delayed but good first round of rains received during the first week of August. Now, everybody is closely monitoring the weather, as standing crop needs a rain. Guar crop needs three round of rains. Next round of rains is important and it is required by September 10 for survival of the crop," a trader in Jodhpur told Business Line.

Earlier, spot and futures prices at Jodhpur market fell in the first week of August on reports of good rains in western Rajasthan.

"Export enquiries are very few. Overseas buyers are not placing any order as crop picture is uncertain and market is volatile," a leading exporter said.

"Sowing in western Rajasthan has been completed but it is down by 50 per cent over previous season's figure. Thus, crop size would be around 50-55 lakh bags (each of 100 kg). Ready stocks of guar seed and gum with stockists, traders and farmers are good enough for the next few months or till news arrivals start. New season arrivals will start around early November," he said.

"Prices are expected to remain firm due to continued speculative buying support and uncertainty of next round of rains," he said.