Guarseed yesterday we have seen that market has moved 4% on good export demand and low output this year, reversing a two session fall due to a special margin imposed on the longside last week. Guar price are on a rising curve for the past few months on good export demand, a weakness in the rupee, low carry forward stocks and a decline in output. Arrivals of the new crop from Rajasthan and Haryana continue. Uncertainties in European markets has been affecting the exports to some extent but traders expect the exports to pick up in coming weeks till year end. As per First Advanced Estimates of Kharif Crop in Rajasthan, the sowing area is 29.07 lakh hectares compared to 30 lakh ha last year. Production expected at 11.37 lakh tonnes vs 15.46 lakh tonnes in 2010-11(Directorate of Agriculture, Rajasthan). The Guar Seed arrivals spurted to 1, 50,000 tonnes (Arrivals from Rajasthan were around 1,10,000 bags and Haryana around 40,000 bags) from 1,25,000 tonnes on Saturday. In Jodhpur guarseed prices gained 227.65 rupees to 6263.65 rupees per 100 kg. Market has opened at 6170 & made a low of 6145 versus the day high of 6497. The total volume for the day was at 203620 lots and the open interest was at 144470.Now support for the guarseed is seen at 6262 and below could see a test of 6028. Resistance is now likely to be seen at 6614, a move above could see prices testing 6732.

Trading Ideas:

Guarseed trading range is 6028-6732.

Guarseed rose to hit the 4 percent upper circuit on good export demand and low output this year

GuarSeed arrivals spurted to 1, 50,000 tonnes from 1,25,000 tonnes on Saturday.

NCDEX accredited warehouses guarseed stocks gained by 2817 tonnes to 57375 tonnes.

In Jodhpur guarseed prices gained 227.65 rupees to 6263.65 rupees per 100 kg.