Guarseed yesterday we have seen that market has moved 4% on good export demand, a weakness in the rupee, low carry-forward stocks and on fears of a decline in output. Good demand for from the United States and Europe for by-product guar gum, which is mostly used as a controlling agent in crude oil drilling, is pushing prices up. According to the exchange circular issued on Friday, the National Commodity and Derivatives Exchange has imposed 10% special margin on all long positions in guar seed and guar gum contracts, the half of which must be paid in cash with effect from 13th December, 2011. Although long term fundamentals remain supportive for the prices, current market conditions do not support further upside rally as arrival season is ongoing in the domestic markets. According to Agriculture and Processed Food Products Export Development Authority, Indian Guar gum exports for the period April- March 2010-11 surged by 84% and stood at 4,03,007 tonnes as compared to 2,18,473 tonnes during the last year. Guar Seed arrivals stood at 1,20,000 bags (Arrivals from Rajasthan were around 1,00,000 bags and Haryana around 20,000 bags). In Jodhpur guarseed prices gained 291.2 rupees to 6240.6 rupees per 100 kg. Market has opened at 6310 & made a low of 6310 versus the day high of 6494. The total volume for the day was at 158490 lots and the open interest was at 181900. Now support for the guarseed is seen at 6371 and below could see a test of 6249. Resistance is now likely to be seen at 6555, a move above could see prices testing
6617.

Trading Ideas:

Guarseed trading range is 6249-6617.

Guarseed yesterday on good export demand, low carry-forward stocks and on fears of a decline in output

Indian Guar gum exports for the period April- March 2010-11 surged by 84% and stood at 4,03,007 tonnes

NCDEX accredited warehouses guarseed stocks gained by 2712 tonnes to 47508 tonnes.

In Jodhpur guarseed prices gained 291.2 rupees to 6240.6 rupees per 100 kg.