The Indian Rupee has strenthened against the Dollar adding an additional 30 Dollars per MT onto Guar prices. This has been paired with the limited availability of Guar Seed due to farmers reducing their crop size. We had predicted this in our previous reports and the reason behind it being unattractive prices.
As expected, farmers have reduced their Guar crop due to the reduction in prices making other commodities more attractive. The overall reduction for the year is predicted to be 10% – 20% lower than last year. This reduction isn’t substantial enough to have a negative effect on prices.
Oil grade Guar Gum had seen an increase in demand from USA, Russia and China and Australia has also come into the market. Food sector demand continues to rise as old users come back into the market.