Guarseed Castor Report As On 31st September 2026 by Amit Gupta, Kedia Advisory
Guarseed Castor
Historical analysis indicates a strong positive correlation (~0.80 estimated) between Guar Seed and Castor Seed since 2018, driven by their similar kharif crop cycles, monsoon dependency, acreage trends, and farmer sowing decisions. Over this period, Guar Seed has gained approximately 84%, while Castor Seed has appreciated around 68%, highlighting a closely aligned long-term trend with potential relative value opportunities during periods of divergence.
Going into 2026–27, the fundamentals of the Guar complex are showing improvement, supported by lower arrivals, tighter physical availability, and improving export demand. Meanwhile, Guar Gum demand remains connected with key sectors such as food processing, pharmaceuticals, industrial applications, and oil & gas exploration, providing additional support to the overall guar value chain.
With the Guar Seed–Guar Gum complex approaching a potential recovery phase, any sustained strength in Guar Seed could act as a positive sentiment trigger for Castor Seed, as both commodities are influenced by similar supply-side factors such as acreage, weather conditions, and crop availability.
So, Bullish Guar Seed → Closely Track Castor Seed | Bullish Castor Seed → Revisit Guar See : The historical correlation between these two kharif commodities highlights a potential correlation-driven agricultural opportunity, where strength in one commodity may provide early signals for opportunities in the other.
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