Guarseed future prices on the national exchanges may remain steady with limited downside in the next few days on improved phyiscal supply amid good export demand.
Guarseed futures prices declined by nearly 2% on the national exchanges on expectation of early arrival of monsoon in Rajasthan.
Also, guarseed spot prices in Jodhpur mandi have declined by nearly Rs 30 to trade at Rs 1,870 per quintal while guar gum prices also fell by Rs 70 to trade at Rs 4,600 per quintal. Guarseed in Bikarner also declined by Rs 30 to trade around Rs 1,770 per quintal on steady supply.
?There are no clear reports on sowing in guarseed producing areas. However, there are some reports of Guari (27% gum content) sowing in Ganga Nagar (Rajasthan) and guarseed sowing will take place from mid-July,? an analyst with Angel Broking said.
There is no clear picture about sowing in Rajasthan and hence price movement would depend on monsoon advancement, sources said.
Monsoon will play important role. If the initial forecast of normal monsoon holds well, guar output may be expected good next year.
Stocks at NCDEX warehouses declined to 56,515 tonne as on May 21, 2008 against 56,759 tonne on May 14, 2008 and 60,712 tonne on Apirl 24, 2008.
Guargum exports for the year ended March 2008 are estimated to have risen about 6% to 2 lakh tonne on strong industrial demand.
?We would not see much downside in the guar market as weakeness in rupee value against US dollar is supporting the domestic prices,? sources said.
Shellac and Forest Products Export Promotion Council (SHEFEXIL) anticipates 10% growth on export of guar products in 2008-09 (October-September) on account of demand from oil drilling industry.