Guarseed yesterday we have seen that market has moved 4.04% on buying by exporters amid negligible stocks in spot markets. Guar seed prices have been rising for the past few months due to a decline in production, lower stocks and very strong overseas demand. The prices have more than doubled since December. Lower productions prospects than earlier estimates, overall strength in Dollar aiding exports and reports of lower stocks are likely to support the market sentiments in medium term however. Anticipations of further rise in exports in coming weeks could aid the uptrend further as per traders. High demand from China for oil drilling activities have been reported recently thus pushing up the demand for Gum. 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 12.09 lakh tonnes vs 15.46 lakh tonnes in 2010-11(Directorate of Agriculture, Rajasthan) as per the 2nd Estimates. Traders estimate that in Haryana too the sowing area has fallen to 2.15 lakh ha vs 2.56 lakh ha last year. Production expected at 2 lakh tonnes while in Gujarat, production estimates at 0.65 lakh tonnes. In Jodhpur guarseed prices gained 1011.55 rupees to 23034 rupees per 100 kg. Market has opened at 22700 & made a low of 22500 versus the day high of 23450. The total volume for the day was at 2821 lots and the open interest was at 7162.Now support for the guarseed is seen at 22817 and below could see a test of 22183. Resistance is now likely to be seen at 23767, a move above could see prices testing 24083.

Trading Ideas:

Guarseed trading range for the day is 22183-24083.

Guarseed ended higher on buying by exporters amid negligible stocks in spot markets

The sowing area is 29.07 lakh hectares compared to 30 lakh ha last year

NCDEX accredited warehouses guarseed stocks gained by 29 tonnes to 49142 tonnes.

In Jodhpur Guarseed prices were gained by 1011.55 rupees to 23034 rupees per 100 kg.