Guarseed dropped on weak spot demand, higher area under cultivation and higher carry-forward stocks.

Hopes of higher production due to ample rains and favourable weather are keeping prices under pressure.

Better rains in Rajasthan have improved the sowing prospects. Also high stocks prevented any strong resurgence in market rates.

Improved sowing reports from Rajasthan amidst high last year stocks have been reported.

Rains in Rajasthan have favourably impacted the sowing process of guar. Latest reports from Rajasthan Agricultural Department shows that area under guar cultivation at
69100 hectares, up from 45200 hectares in the same period previous year.

Guar has been trading weak as the sowing improved in Rajasthan.

The rains have arrived in north-west India before time and this augurs well for the new crop sowing.

OUTLOOK: Guarseed below 4650 level looks to test 4400 level. Overall trend remains weak and also volume is low in spot market.