The Guar market is firm with limited volatility. Good news on the Indian Monsoon should prevent a spike in prices.
The initial April monsoon reports from the Indian Meteorological Department (IMD) have forecast adequate rainfall over the June-August Monsoon season. The South Asian Climate Outlook Forum, quashed concerns over the negative impact on Monsoons due to El Nino; releasing a statement that “normal rainfall is expected over much of South Asia”.
Suppliers of splits are holding stocks in anticipation of achieving higher prices. They are also awaiting further Monsoon reports from the IMD; which are due at the end of May. The reports will provide an indication of future supply and the possible impact on pricing.
Demand continues to be dominated by the Oil and Gas industry in USA and Russia. In comparison to this sector, the Food and technical market currently forms a significantly smaller portion of the market.
No major changes are anticipated in the near future, however, stockists, trader’s and manufacturers are eagerly awaiting the IMD’s end of May monsoon reports.