Guarseed yesterday we have seen that market has moved -1% on profit booking and recent restrictions imposed by European Union on export of Indian guar gum. However, recent notification for Guar gum exports to European Union may hit exports to some extent as the Indian Gum industry is flooded orders from EU. According to the Rajasthan farm Department, Guar seed output in Rajasthan in the current season is estimated at 14.9 lakh tonnes. The forecasted Indian output this year is much higher than the 4.5 lakh tonnes of 2009-10 and 9.5-10 lakh bags in 2008-09. In Jodhpur guarseed prices dropped -3.05 rupees to 3251.4 rupees per 100 kg. Market has opened at 3301 & made a low of 3263 versus the day high of 3313. The total volume for the day was at 132820 lots and the open interest was at 195810.Now support for the guarseed is seen at 3257 and below could see a test of 3235. Resistance is now likely to be seen at 3307, a move above could see prices testing 3335.

Trading Ideas:

Guarseed trading range is 3235-3335.

Guarseed dropped yesterday on profit booking and recent restrictions imposed by EU on export

Guarseed is taking resistance at 3307 and support is seen at 3257.

Guar seed output in Rajasthan in the current season is estimated at 14.9 lakh tonnes

In Jodhpur guarseed prices dropped -3.05 rupees to 3251.4 rupees per 100 kg.