Guarseed yesterday we have seen that market has moved -0.74% due to rains in Rajasthan, the biggest producer that brightened prospects for the crop and a decline in the spot demand. The total sowing acreage of guarseed in the state was reported at 30 lakh hectares as on 27th August 2011 against 26.08 lakh hectares that were reported last year in the same period. Strong sowing progress of guarseed crop has propelled the long liquidation in market. Rains in Rajasthan over last few days too created a bearish impact as that would favor the sowing of the new crop. 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. Guar seed arrivals stood steady at 5,000 bags in the Jodhpur Mandi. In Jodhpur guarseed prices dropped -55.7 rupees to 4216.4 rupees per 100 kg. Market has opened at 4321 & made a low of 4262 versus the day high of 4350. The total volume for the day was at 192560 lots and the open interest was at 127390.Now support for the guarseed is seen at 4257 and below could see a test of 4216. Resistance is now likely to be seen at 4345, a move above could see prices testing 4392.

Trading Ideas:

Guarseed trading range is 4216-4392.

Guarseed moved -0.74% due to rains in Rajasthan brightened prospects for the crop

Guar seed arrivals stood steady at 5,000 bags in the Jodhpur Mandi

NCDEX accredited warehouses guarseed stocks dropped by 450 tonnes to 65577 tonnes.

In Jodhpur guarseed prices dropped -55.7 rupees to 4216.4 rupees per 100 kg.