Guar seed price may go up on lower harvest

Guar seed futures and spot prices in the Rajasthan markets may rule firm in the next few days on reports of low harvest expected in the next season (September-October) amid good export prospects.

NCDEX guar seed futures prices have gone up significantly by 11% in just two week while spot prices in Jodhpur and Bikaner mandis of Rajasthan have risen by 7-9% this month mainly on reports of lower than expected crop in Rajasthan.

?Overall crop in Rajasthan is expected to be lower than previous season due to deficient rainfall in the western Rajasthan but guar crop prospect looks good in Gujarat and Haryana. Total crop is expected to be around 7-7.5 lakh tonne which is almost same as previous season,? a Jodhpur based trader said.

With carry forward stock of around 1.5 lakh tonne, the total supply may reach to 9 lakh tonne for the new season. Export demand will continue to grow by 10% as India is the only supplier, he said.

?Crop prospect in Haryana is good. Acreage of guary (less gum content) in Haryana is expected to be higher by 20% over previous season while guar seed crop in Rajasthan is expected to be same or slight lower than previous season but higher acreage in Haryana may compensate crop loss expected in Rajasthan,? a local trader said.

Guar seed September 2007 contracts on the NCDEX platform have moved up by about Rs 186 to trade at Rs 1,885 a quintal on Tuesday over past two weeks on forecast of lower crop. Guar seed August 2007 contracts also gained by Rs 180 to trade at Rs 1,879 a quintal over past two week.

?Guar seed futures prices may move up further in the next few days and may touch 2,200-2,300 levels on good export demand. Also, second round of rainfall in Rajasthan is important for crop. Rajasthan may witness same or slight lower crop next season,? Badruddin Khan, an analyst with Angel Commodities said.Spot price in Jodhpur was quoted at

Rs 1,757 per quintal, up by Rs 7.2 per cent or Rs 119 on Wednesday while spot price in Bikaner also moved up by 9% or Rs 152 a quintal to trade around Rs 1,784 a quintal.