Commodity Trading Tips for Guar Seed by KediaCommodity

Ajay Kumar Kedia 17 January 2012

Guarseed yesterday we have seen that market has moved 4% in the wake of weak arrivals in major mandies along with strong export demand. As per market sources, the total daily arrivals of guarseed reduced to 40000 bags ( Rajasthan 32000, Haryana 8000 bags) from 80000 bags that were reported earlier in major mandies. This was mainly due to weak supplies from stockiest. Moreover, traders also expected that the total export demand of guargum in the current year is likely to touch 5 lakh tonnes in the current year against the normal demand of around 2.5-3 lakh tonnes annually due to poor supplies in other exporting nations such as Pakistan and Syria. The Rajasthan government has revised the 2011 production estimates for guar seed upwards to 1.21 million tonnes from its earlier estimate of 1.14 million tonnes. NCDEX has reduced the open interest limits for members and clients in guar gum and seed contracts effective Jan. 21. The exchange also raised the special margin on all long side contracts to a total of 40 percent. In Jodhpur guarseed prices gained 475.5 rupees to 11412 rupees per 100 kg. Market has opened at 10443 & made a low of 10443 versus the day high of 10544. The total volume for the day was at 980 lots and the open interest was at 85880.Now support for the guarseed is seen at 10477 and below could see a test of 10409. Resistance is now likely to be seen at 10578, a move above could see prices testing 10611. Market has opened at 10443 & made a low of 10443 versus the day high of 10544. The total volume for the day was at 980 lots and the open interest was at 85880.Now support for the guarseed is seen at 10477 and below could see a test of 10409. Resistance is now likely to be seen at 10578, a move above could see prices testing 10611.