The crop yield and demand has created a bullish sentiment in the short and long term projections.
In the past week the price for Guar Gum dipped due to the unexpected off-loading of seed
s and splits by the farmers and stockists. This momentary spike in supply was rapidly absorbed buy the food and oil sectors. Therefore the price has returned to the previous levels.
Based on the information received from various sources, it seems that the most recent calculations for crop yield this year, will come in below the yield in 2013. This shortage in supply should result in the prices remaining strong.
The demand position remains unchanged from last week. As soon as we notice a change, we will send another mail shot with an update.
Considering the current situation and if there are no interruptions in supply, we expect demand and prices to remain firm within the Guar market.