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A rebound was witnessed in NCDEX guar complex after the recent fall on concerns over supply. Decline in arrivals in the spot market and firmer crude oil prices lifted sentiments.

Ratio of guar seed to guar gum for week ended 27 Dec 2024, was up to 1.96 compared to 1.94 a week earlier. According to Baker Hughes, the oil and gas rig count in the US was unchanged at 589 in the week to Dec. 27. Baker Hughes said that puts the total rig count down 33 rigs, or 5.3% below this time last year. Baker Hughes reported that the number of oil rigs and gas rigs remained steady this week, holding at 483 and 102, respectively. The oil and gas rig count dropped about 20% in 2023 after rising by 33% in 2022 and 67% in 2021, due to a decline in oil and gas prices, higher labour and equipment costs from soaring inflation and as companies focused on paying down debt and boosting shareholder returns instead of raising output. For the year, the total oil and gas rig count was down for a second year in a row for the first time since 2020.

According to APEDA, 261189.98 metric tonnes of guar gum was export during Apr-Oct 2024 compared to 256071.49 metric tonnes exported during the same period last year.

According to Commissionerate of Agriculture, Rajasthan first advanced estimates of various principal crops during Kharif 2024, guar has been sown over 2696976 ha and production and yield is estimated to be at 1677504 kg and 622 kg. Final estimates for kharif 2023 showed guar seed being sown in 2882196 ha and 1479912 kg being produced with yield of 513kg /ha.

Guarseed NCDEX JAN

A voluminous rise above 5410 is required for upward moves to gather momentum. Inability to clear the same may call for sideways to weak trades.

Guargum NCDEX JAN

A voluminous rise over 10700 is required for the sentiments to improve. As long as this range caps, may trade sideways to weak.

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