Guarseed prices are expected to remain bullish in the short term on lower supply and higher export demand.
Guarseed January 2008 futures prices on the NCDEX platform have moved up by around Rs 80 to trade at Rs 1,731 a quintal on some local support amid firm spot markets.
Open Interest was 1.15 lakh tonne on November 28, up by 15,000 tonne over last week. Total volume for January contracts was around 23,147 tonne, up from 10,160 tonne last week.
Firm sentiment prevailed across the major spot markets due to improved demand.
Daily arrivals declined to 55,000 bags this week at the major mandis and average daily arrivals were around 80,000 bags during the last week. Quality was not good in the early picks but now it is good, market sources said. Guarseed stocks with NCDEX warehouses have declined to 39,991 tonne as on November 27, against 40,984 tonnes from November 24.
?Lower arrivals coupled with declining warehouse stocks are likely to provide some support to the prices. Sellers might restrict themselves from selling their produce and prices might trade in the range of Rs 1,650-1,750 a quintal in the short-term,? an analyst with Angel Commodities said.
?There are some export enquiries. Export demand may increase by about 10-15% this year over last year,? a local trader said.
Export demand is expected at 2.5 lakh tonne this year against 2.10 lakh tonne in previous year.
Though the October-January period is the peak season for exports buying but so far demand have not picked up. Traders expect good export for guar seed this season.
Guarseed production which is revised at around 80-85 lakh bags, slightly up by 10% compared to the previous year.