Guarseed futures in major mandis of Rajasthan may remain firm over the next few days due to poor advancement of monsoon coupled with estimated lower sowing acreage and lower stocks.
Guarseed futures on the National Commodity & Derivatives Exchange (NCDEX) on Friday moved smartly by nearly Rs 20 to trade at Rs 1,750 per quintal at 5 pm mainly on reports of estimates of a 10% fall in acreage in upcoming sowing season with some rains in Rajasthan weighed on sentiment. However, guarseed futures settled slightly lower at Rs 1,744 per quintal on Thursday due to profit booking.
?Prices will take some corrections only when the monsoon rains hit the major guar growing regions of Rajasthan in July. Overall trend in guarseed remains positive on reports of lower sowing acreage and lower stocks,? an analyst with Angel Commodities said.
Sowing of guari (low content) which normally starts from May 15 & continues till June 15, has not yet started in the current season. Actual sowing of guar (30% gum content) crop would take place in mid July. Apart from monsoon, one more factor which would decide the further trend in guarseed is the sowing acreage. It is expected that in the coming season, farmers might shift to the other remunerative crop like cotton, which had fetched good returns in the past 3-4 years, traders said.
Current meteorological analysis and numerical weather prediction models suggest that southwest monsoon is likely to advance over remaining parts of Konkan & Goa including Mumbai around 21and 22 June. Rajasthan may witness dust storm, thundershowers during the next 24 hours, India Meteorological Department (IMD) said.
?Any significant decline in the prices should be treated as a good buying opportunity due to strong fundamentals,? an analyst said.
Guargum exports were initially expected around 2.25 lakh tonne during the current fiscal but now the industry expects it to be 1.75 lakh tonne only.