Mayfair Commodities_KK

 

Market Overview

Exporters are predicting higher operating, raw material and finished product costs next year. 

 

Supplycotton-615103_1280 

Suppliers have been complaining about low arrivals of Guar seeds in the market. The majority of the new harvest is now a storage with stockists and speculators. Some are predicting the crop yield for 2016 to be 50% lower compared to 2015.The farmers who choose to devote more acreage to crops such as cotton have experienced far greater yield and prices for cotton, due to more stable and higher prices. This could further motivate other Guar farmers to make the transition from Guar to higher yielding crops, which could have a knock-on effect on the acreage dedicated to Guar cultivation

The farmers who choose to devote more acreage to crops such as cotton have experienced far greater yield and prices for cotton, due to more stable and higher prices. This could further motivate other Guar farmers to make the transition from Guar to higher yielding crops, which could have a knock-on effect on the acreage dedicated to Guar cultivation

 

 

oil-pump-jack-1407715_1280Demand

Demand from the food and technical industries have remained stable. There has been an increase in the demand from the shale gas industry, predominantly from USA, Russia, and the Middle East. The UK treasury document released with the autumn statement last month showed a clear sign of government support for shale gas exploration. Cuadrilla also got approval on four wells near Blackpool even though it had been blocked by the local councils. Liquid natural gas (LNG) imports in China are up by a 5th and the US is set to export a record number of cargoes of LNG this month; amid booming shale resources. This all points to the potential of increased demand for Guar Gum in 2017.

 

Overview

The current prices of Guar Gum are at lower levels according to industry insiders. Based on the current information regarding supply and demand, this is a good opportunity to cover any requirements for the near future. Until our next market report, our stocks are listed below, if you have any requirements now or in the future, please contact us via phone, email or our website. 

 

 

 

 

 

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