Guarseed yesterday we have seen that market has moved -1.5% as the new crop was set to arrive and over concerns the economic turmoil in the United States and Europe could trim export demand. The new crop is expected to arrive from mid October and gradually peak by November-December. Arrivals from the new crop would start coming in small quantities from the middle of this month. This has started building up pressure in the market. The United States and Europe are the biggest importers of guar gum, a by-product of guar seed, which is mostly used as a controlling agent in oil drilling. As per reports, the area cultivated in Rajasthan has fallen to 2.758 million hectares as on Aug 30 vs 3 million hectares same period last year. Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices. Guar seed arrivals were steady at around 5,000 bags in Jodhpur. In Jodhpur guarseed prices dropped -92.5 rupees to 4255.85 rupees per 100 kg. Market has opened at 4328 & made a low of 4154 versus the day high of 4422. The total volume for the day was at 269600 lots and the open interest was at 123620.Now support for the guarseed is seen at 4137 and below could see a test of 4011. Resistance is now likely to be seen at 4405, a move above could see prices testing 4547.

Trading Ideas:

Guarseed trading range is 4011-4547.

Guarseed fell as crop was set to arrive and concerns economic turmoil in US and Europe could trim demand

The new crop is expected to arrive from mid October and gradually peak by November-December

NCDEX accredited warehouses guarseed stocks gained by 61 tonnes to 62597 tonnes.

In Jodhpur guarseed prices dropped -92.5 rupees to 4255.85 rupees per 100 kg.