Guarseed yesterday we have seen that market has moved 0.41% on some short covering after  prices dropped due to bearish export demand of guar gum in major mandies coupled with favourable crop condition in major producing states. As per market sources, sluggish export demand of guargum due to negative trend in crude oil, prices plunged by almost 10% in global market. Moreover, steady sowing progress of guarseed in Rajasthan and Haryana also added some selling in futures market. Guar seed arrivals stood at 4,000 bags in the Jodhpur mandi. As per latest NCDEX Circular, the following has been effected on Guarseed and Guargum:  Reduction in Special Margin of 10% by 5% on the Long side in all the running contracts w.e.f. September  1, 2011and reduction of balance 5% Special Margin on the Long side in all the running contracts w.e.f. October 21, 2011. Low export demand from the Economic downtrend had been keeping pressure on the rates but there are expectations that with rates having fallen a lot over last few days, the export demand could pick up in coming weeks. In Jodhpur guarseed prices dropped -1.15 rupees to 4572.75 rupees per 100 kg. Market has opened at 4668 & made a low of 4650 versus the day high of 4733. The total volume for the day was at 92460 lots and the open interest was at 169570.Now support for the guarseed is seen at 4647 and below could see a test of 4607. Resistance is now likely to be seen at 4730, a move above could see prices testing 4773.

Trading Ideas:

Guarseed trading range is 4609-4775.

Guarseed moved 0.41% on some short covering after prices dropped due to bearish export demand

Steady sowing progress of guarseed in Rajasthan and Haryana also added some selling in market

NCDEX accredited warehouses guarseed stocks dropped by 100 tonnes to 63129 tonnes.

In Jodhpur guarseed prices dropped -1.15 rupees to 4572.75 rupees per 100 kg.