Guar yesterday we have seen that market has moved 2.78% due to a decline in arrivals and good demand from millers and stockists as fresh export enquiries emerge for guar gum. Despite higher prices, demand for guar gum is very good from exporters and domectic market makes the sentiment positive with makes prices to remain firm. India is the world's largest producer and exporter of guar gum and supplies 80 percent of the global demand, industrial guar gum, used as a controlling agent in oil wells to facilitate drilling and prevent fluid loss, is the most sought after guar product and accounts for about 45 percent of the total demand. Estimates of higher production due to increased area, however, capped the gains. Guar seed output in Rajasthan, the country's top producer, may come in at 1.49 million tonnes in 2010/11, the state government's estimates showed. The estimate has been lowered slightly from the previous estimate due to unseasonal rains during the harvesting operations. In Jodhpur guar prices dropped -10.5 rupees to 2560.6 rupees per 100 kg. Now support for the guar is seen at 2678 and below could see a test of 2619. Resistance is now likely to be seen at 2767, a move above could see prices testing 2797. Trading Ideas:

Guar trading range is 2611-2789.

Guar ended higher due to decline in arrivals and good demand.

Guar is taking resistance at 2768 and support is seen at 2708.

NCDEX accredited warehouses guar stocks rose 1297 tonnes to 84440 tonnes.

In Jodhpur guar prices dropped -10.5 rupees to 2560.6 rupees per 100 kg.