Guar prices remained supported and gained around 10 percent in the month period - Kedia Advisory
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Highlights
* Guar prices remained supported and gained around 10 percent in the month period as most of the cash market yards reopened after the easing of the COVID lockdown restriction.
* Moreover, recent reports regarding crop switching from Guar Seed to other Kharif crops such as Cotton, Soybean and Groundnut in the states of Haryana, Rajasthan and Gujarat respectively are expected to support prices.
* Dhaniya prices in month period prices gained over 2 percent as mandi arrivals decreased on commencement of mandi closures and lockdown restriction due to 2nd COVID wave.
* Rain over the country during the southwest monsoon season "is most likely to be normal -- 95 percent to 105 percent of Long Period Average (LPA) -- with a tendency to be in the positive side of the normal", the IMD forecast stated.
* IMD has forecast that rainfall will pick up gradually in August across north India, which has just witnessed a revival due to favourable meteorological conditions.
* There will also be some respite in the central and eastern regions in the coming week, IMD said, with forecasts of heavy showers ranging from Maharashtra to Odisha.
* In Rajasthan, Guar sowing is done in 1604.81 thousand hectares as compared to last year’s 1592.3 thousand hectares i.e up by 0.8% while sowing is down by 38.28% as the targeted area of sowing is 2600 thousand hectares for the current year.
* In Gujarat, Guar Seed sowing is done in 67,730 hectares as compared to last three year's overage of 1,33,902 i.e down by -49.42% and also down by 22.53% from 2020.
* Export of Guargum from India is expected to improve as improving demand for petroleum products and a jump in oil and gas prices boosted operations.
* India's guar split exports rose in the month of May 2021 by +99.93% to 10838 tonnes compared to 5,560 tonnes during May 2020. However, the guar split shipments went up by 41.82 % in May 2021 compared to the same period last year.
* Guar gum and guar seed exports are expected to rise in the coming weeks with higher demand in the food industry in the western countries as higher demand for guar gum powder in the shale oil production in the United States.
* There is considerably a good sign of gradual increase in oil rigs with a surge in crude oil demand in recent months and this could increase the overseas guar gum demand.
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