MARKET NEWS & COMMENTARY
Guar Split price trend for this week:
Guar Split prices observed a decrease on Monday, an increase on Tuesday and then decrease throughout during this week, i.e. 2020 – Week #39. The weekly average Guar Split price decrease by 1.50% as compared to the last week, 2020 – Week #38, weekly average Guar Split price. The weekly average Guar Seed price decreased by 0.50% against the last week average Guar Seed price.
The price fluctuation during this week is due to speculation based on the crop growth situation for this year’s Kharif season and rains in the Guar growing areas, crude oil prices, overseas demand situation, the supply of Guar crop in local markets and arrival of new Guar Crop from this year’s season. During this week, very limited buying activity observed from the industry.
The average Guar Split price during 2020 – Week #39 is INR 61.400 per Kg (USD 0.841 per Kg).
New Guar Crop Update:
During this week, the supply of Guar Seeds in the local markets was very less and similar to the last week. The new Guar crop arrival shall start soon. Although, a very small quantity of new Guar crop (a few hundred bags of black seeds only) from the irrigated areas of Guar growing region has started to arrive at some places.
A slow demand is observed for Guar Gum Powder from the Oil & Gas industry. During this week, Crude Oil prices fluctuated between USD 40.50 per Barrel level to USD 43.50 per Barrel level. The demand for Guar meal (Guar Korma) is very good, but Guar Churi is low.
Supply-side – local market:
The arrival of the Guar Seeds during this week is at around 8000 – 10000 bags per day. The trend in Guar Split prices during 2020 – Week #01 to #39 is highlighted below via a graph for your perusal.
Guar faced its fair share of problems due to COVID – 19 situation with an impact that can be been seen by the quantity of Guar products exported from India. During Aug’2020 the Guar Gum products exported were approx. 40% less as compared to the Guar products exported in Aug’2019. Guar Korma also experienced a decrease of approx. 45% in Aug’2020 as compared to Aug’2019. This year, Department Of Agriculture (DOA) targeted Guar sowing of 30,00,000 Ha area in Rajasthan. As per data released on 26th August’2020 by DOA Rajasthan, Guar Seed sowing completed so far in 23,84,700 Ha area which is 79.5% of this year’s targeted Guar cultivation. During the same period last year Kharif season, Guar sowing was completed in 27,52,100 Ha area. Thus, Guar sowing happened approx. 10% less as compared to the last year’s Kharif season. Also, the Government of India is under the process of changing Agricultural policies. Therefore, at the moment, farmers are not bringing in Guar Seeds to the market.