Guar yesterday we have seen that market has moved -0.76% as expected rise in production weighed. Though the demand from spot market from stockists limited the downside. Stockists are very active in the spot market. They are expecting good exports demand for guar gum in next few months. Guar seed output in Rajasthan, the country's top producer, is expected to rise to 1.51 million tonnes in 2010/11, boosted by higher area and good monsoon rains. In Jodhpur guar prices dropped -22.9 rupees to 2372.9 rupees per 100 kg. Market has opened at 2490 & made a low of 2474 versus the day high of 2509. The total volume for the day was at 133150 lots and the open interest was at 163990. Now support for the guar is seen at 2467 and below could see a test of 2453. Resistance is now likely to be seen at
2502, a move above could see prices testing 2523.

Trading Ideas:

Guar trading range is 2453-2523.

Guar ended weak as expected rise in production weighed

Guar is taking resistance at 2502 and support is seen at 2467.

Guar seed output in Rajasthan is expected to rise to 1.51 million tonnes in 2010/11

In Jodhpur guar prices dropped -22.9 rupees to 2372.9 rupees per 100 kg.