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With the current demand and arrivals of seeds, the Guar market is anticipated to remain range bound in the coming months.



Supply 640px-Flickr_-_Nicholas_T_-_Rows_(1)

Supply in the local market has mostly diminished, as only a few thousand bags have arrived, while some markets have received nothing. The majority of the seeds that are coming into the market are being taken into stock, making the stockists extremely crucial. The current strength of the stockists is unmistakable as they are commanding a 3% premium above the NCDEX. This is extremely uncommon, as the ready markets usually quote at a discount from the NCDEX.




The demand and arrival of seeds in the market are at equilibrium. This situation will remain until the stockists sell all of their stock and move on to another crop. Demand has remained weak from China, Europe and U.S.A, however what happens over the next few months will give a more accurate indication of how the market has responded to these low prices.





The price of guar shouldn’t fluctuate too much, the lack of demand should reduce the chances of the prices increasing and the lack of supply should keep a check on any sharp decreases.

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