Guar yesterday we have seen that market has moved -1.95% on expectations of higher output supported by a rise in acreage, and as demand for gum remained sluggish. Reports of better production are not allowing market to recover. India's guar seed output is likely to jump over three-fold to nearly a million tonnes in 2010/11 due to the increase in acreage and conducive rains. In Jodhpur guar prices dropped -80.65 rupees to 2014.9 rupees per 100 kg. Market has opened at 2092 & made a low of 2039 versus the day high of 2092. The total volume for the day was at 346950 lots and the open interest was at 173670.Now support for the guar is seen at 2032 and below could see a test of 2009. Resistance is now likely to be seen at 2085, a move above could see prices testing 2115.

Trading Ideas:

Guar trading range is 2009-2115.

Guar settled lower on expectations of higher output supported by rise in acreage

Guar is getting resistance at 2085 and support is at 2032 level

Spread between Guar OCT & NOV contracts yesterday traded in the range of 2 to 10.

In Jodhpur guar prices dropped -80.65 rupees to 2014.9 rupees per 100 kg.