As mentioned in our last report, adequate rainfall in the Guar Growing regions has resulted in a reduction in price by almost $200-$300 per metric tonne.
Although the rainfall has been beneficial it has affected the farms where the crops were ready to be harvested. Currently supply in the market has come to a complete halt and arrival of new crops will now most likely be delayed by another couple of weeks. This gives speculators an opportunity to play the markets in the coming days.
In the long-term carry forward stock combined with the standing stock crop output seems sufficient to meet current demand.
Many manufacturers have reported a reduction in demand, by almost 30-40% compared to the same period last year. This is because the food and technical customers have not come back on the market as was anticipated.
However Mayfair Commodities have actually noticed an increase in demand from the same period last year and have also received inquiries from new customers.
The future prices of Gaur Gum will be determined predominantly on the demand from the oil drilling and shale gas industry.
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