Guarseed and gum has been threatening a breakout for days now and showed glimpses of doing that for the third time during the last fortnight. The commodity looks strong fundamentally and even technically speaking is expected to break free in the recent future.
According to the Rajasthan agricultural ministry, guar production in the state is estimated to be around 4.25-4.75 lakh tonnes this year, well below the governments target of 6 lakh tonnes.
The traders on the other hand estimate an even lower crop output. Guarseed futures NCDEX surpassed previous advances following a slightly firm opening in early trading. However, increased selling pressure at those levels pushed futures in to negative territory again.
Spices with the exception of Jeera failed to consolidate as it slipped down further. Pepper prices that were at the technical support levels the previous day failed to make further progress.
Courtesy: Geojit Commodities Ltd