Guar Advanced Futures Finish Lower for Second Successive Month
Guar complex futures ended lower for the second consecutive month in October due to new season arrivals. regardless of raise in exports prices had been underneath pressure primarily on experiences of higher carryover shares with the traders and mills.
Guar seed futures plunged by way of about 10% in last two months whereas guar gum is down through 7.6%. the most energetic guar contracts for November supply at the NCDEX, fell 7.1% or Rs. 269 per quintal whereas guar gum November down with the aid of 5.1% or Rs. 415 per quintal to close at Rs. three,543 and 7,735 per quintal in October respectively.
Guar gum exports from India in April-Septenner period surged 54% on year to 2.53 lakh tonnes compared to 1.64 lakh tonnes remaining 12 months as per the info released by means of the Agricultural and Processed food products Export construction Authority.
The major guar gum export locations from the country are america, Norway and China. within the first 5 months in FY 2107/18, US imported greater than 84,847 tonnes of guar gum from the u . s . in comparison with 63,500 tonnes ultimate year. US is increasing its shale fuel manufacturing which surge demand for guar gum as it is used as a fracking agent in shale gasoline extraction. Exports to Norway increased through 52% to 27,300 tonnes whereas exports to China are down 11% for the same period.
The exports had been improving this season however the prices have been under pressure regardless of decrease acreage suggested in Rajasthan and Gujarat.
Consistent with respective state agriculture division, in Rajasthan, the world beneath guar is pegged at 31.67 lakh hectares as compared to greater than 35 lakh hectares within the earlier season, while in Gujarat, the acreage was down about 10% to 2 lakh ha compared to 2.24 lakh ha closing year. For 2017/18 season, Rajasthan government has set a goal of 38 lakh hectares for guar whereas three year moderate space in Gujarat is just about 2.9 lakh hac.
As per the primary boost estimates, the production of guar in Rajasthan is predicted to be greater at 16.8 lakh tonnes if state realizes 5 12 months moderate of 529 kg / hac. however as there are reviews of damage throughout the monsoon season to standing guar crop due to large extra rains in the major guar sowing districts of Western Rajasthan. Western Rajasthan districts like Bikaner, Barmer, Jaisalmer, and Jodhpur account for greater than 80% of guar acreage in Rajasthan.
"The manufacturing estimates for Gujarat state all over 2017/18 is 1.44 lakh tonnes, which is 40% lower than the last 12 months production forecast of 2.42 lakh tonnes. Going forward, the guar seed and gum prices is predicted to improve as it's possible that the manufacturing within the country can be lower than the expectation due to much less acreage and crop harm. moreover, the exports demand shall be higher throughout the months of November and December in an effort to toughen costs," said Ritesh Kumar Sahu, basic analyst (agri commodities), Angel Commodities Broking.
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