Guarseed yesterday we have seen that market has moved 3.24% on buying by exporters and traders expectation of further rise in prices. Government data shows guar gum export is growing at very good rate and is likely to keep prices firm for short term. Guar gum exports from India rose more than 75 percent to 348,000 tonnes from April to October 2011, the government data showed. The exports nearly doubled to 403,000 tonnes in the financial year ended in March 2011. Good demand from the U. S. and Europe for guar gum, a guar seed by-product that is mostly used as a controlling agent in crude oil drilling, and a lower harvesting are pushing the prices up. The prices have more than doubled since November. Lower production prospects, moderate arrivals and any further strength in Dollar are likely to support the market Fundamentals later on though some more corrections in the short term cannot be ruled out. After harvesting a record 15 lakh tonnes of Guar crop in Rajasthan in 2010-11season (Oct 10- Sep 11), output in the current season has declined to around 12.09 lakh tonnes. In Jodhpur guarseed prices gained 421.15 rupees to 12593.95 rupees per 100 kg. Market has opened at 12200 & made a low of 12115 versus the day high of 12648. The total volume for the day was at 29850 lots and the open interest was at 44000. Now support for the guarseed is seen at 12237 and below could see a test of 11910. Resistance is now likely to be seen at 12770, a move above could see prices testing 12976.

Trading Ideas:

Guarseed trading range is 11910-12976.

Guarseed rose on buying by exporters and traders expectation of further rise in prices

Guar gum exports from India rose more than 75 percent to 348,000 tonnes from April to October 2011

NCDEX accredited warehouses guarseed stocks dropped by 280 tonnes to 62444 tonnes.