The prices for 3500 cps Guar Gum, over the last 7 days, has increased by almost $100 pmt. The reason for this increase is due to some areas receiving too much rainfall, which is now damaging crops.
Farmers plant the seeds soon after the first rainfall of the monsoon, from this point it takes almost 90 days for the crops to reach maturity and to be harvested. Therefore the crops are still vulnerable to the weather patterns during this period. The increased rainfall in a few Guar growing regions has been damaging crops resulting in speculators seizing the opportunity to push the prices higher.
Due to the current holiday period in Europe and America the demand has been lower, which was expected.
So long as the weather is stable over the next 2 months, the prices should remain relatively level, however if the rains continue, speculators will push the price even higher.