Guarseed yesterday we have seen that market has moved 0.37% helped by output concerns from Rajasthan on patchy monsoon rains and lower stocks. Expected pick up in exports at the lower levels could support the prices in coming weeks as traders expect medium term bullishness for the commodity rates. But short term trend is expected to remain very volatile. As per latest release from Rajasthan State Agriculture Board, the total sowing acreage of guarseed in the state was reported at 27.98 lakh hectares as on 30th August 2011 against the targeted area of 27 lakh hectares. This was mainly due to strong prices of guarseed in the major producing states. Guar seed arrivals stood steady at 5,000 bags in the Jodhpur Mandi. Lower arrivals, low stocks and expected rise in export demand from US and EU along with stockists demand are however expected to support the prices. In Jodhpur guarseed prices dropped -50.45 rupees to 4272.1 rupees per 100 kg. Market has opened at 4325 & made a low of 4299 versus the day high of 4365. The total volume for the day was at 118060 lots and the open interest was at 125460.Now support for the guarseed is seen at 4303 and below could see a test of 4268. Resistance is now likely to be seen at 4369, a move above could see prices testing 4400.

Trading Ideas:

Guarseed trading range is 4268-4400.

Guarseed gained helped by output concerns from Rajasthan on patchy monsoon rains and lower stocks

Expected pick up in exports at the lower levels likely to support the prices in coming weeks

NCDEX accredited warehouses guarseed stocks dropped by 110 tonnes to 66027 tonnes.

In Jodhpur guarseed prices dropped -50.45 rupees to 4272.1 rupees per 100 kg.