Guar Market Wrap - Report on Guar Seed & Guar gum - Geojit

Guarseed and guargum futures on NCDEX posted losses for the second consecutive week last week. Concerns over demand prevailed in the market, though firmer crude oil prices and worries over locust attack may lend support.

Swarms of locusts have hit the kharif crop in 25 oust of the 33 districts of Rajasthan seriously affecting 90,000 ha across Sri Ganganagar, Hanumangarh and Nagaur accoding to the state farm official. Swarms of locusts have hit the kharif crop in 25 out of the 33 districts of Rajasthan seriously affecting 90,000 ha across Sri Ganganagar, Hanumangarh and Nagaur. The total acreage under summer and kharif in the 2020-21 (Jul-Jun) season is pegged at over 517,000 ha. Of the total cultivated area in the state so far, cotton covers 387,000 ha, green fodder 73,000 ha, guar 11,000 ha and vegetables around 18,000 ha, among others.

Baker Hughes data released last Friday showed that the number of active US rigs drilling oil fell by 15 to 222 last week. The total active U.S. rig count also declined by 17 to 301.

The National Commodity & Derivatives Exchange has extended the event-based additional surveillance margin of 5% on guar gum contracts to June 10, the exchange said in a circular.
Ratio of guar seed to guar gum for week ended 29 May 2020 is 1.49, down compared to 1.50 a week earlier.

According to the Indian Meteorological Department, the southwest Monsoons have arrived over the Kerala coast on the onset date of June 1.

Export of guar split has declined in the month of February-20. Exports in the month of February20 are lower by around 40% compared to previous month. India exported around 2020 tonnes of guar split in the month of February-20 at an average FoB of $ 1119 per tonne. Of the total quantity, around 1700 tonnes have been exported to China

Export of guar gum has declined in the month of February-20 by 38.27 percent compared to previous month. India exported around 14596.11 tonnes of guar gum at an average FoB of $ 1685.40 per tonne in the month of February-20 compared to 23178.89 tonnes in January-20 at an average FoB of $ 1710.37 per tonne. Exports are expected to decline in March-20 on weak demand in overseas markets.

Source : Equity Bulls

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