Guarseed yesterday we have seen that market has moved 3.48% on lower acreage in the biggest producer Rajasthan and depleting stocks. As per latest release from Rajasthan State Agriculture, the total sowing acreage of guarseed in the current year was reported at 17 lakh hectares as on 16th August 2011, down almost 16% from the last year in the same period. This was due to delayed monsoon in the major producing areas of guarseed in Rajasthan such as Barmer, Bikaner and Jodhpur. Moreover, traders are also expected that the total export demand of guargum in the current year were reported at 4.20 lakh tonnes against 2.30 lakh tonnes that were reported last year in the same period. As on Aug 16, farmers in Rajasthan, the country's biggest producer, had cultivated guar seed on 2.398 million hectares against 2.841 million hectares a year ago. In Jodhpur guarseed prices gained 23.7 rupees to 4192.7 rupees per 100 kg. Market has opened at 4315 & made a low of 4287 versus the day high of 4461. The total volume for the day was at 191940 lots and the open interest was at 133410.Now support for the guarseed is seen at 4341 and below could see a test of 4227. Resistance is now likely to be seen at 4515, a move above could see prices testing 4575.

Trading Ideas:

Guarseed trading range is 4227-4575.

Guarseed moved 3.48% on lower acreage in the biggest producer Rajasthan and depleting stocks

As on Aug 16, farmers in Rajasthan had cultivated guar seed on 2.398 million hectares

NCDEX accredited warehouses guarseed stocks dropped by 320 tonnes to 66927 tonnes.

In Jodhpur guarseed prices gained 23.7 rupees to 4192.7 rupees per 100 kg.