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The market has been extremely volatile due to delayed, then sufficient and finally unexpected rains in the Guar growing regions of India. This combined with the dollar exchange rate difference by almost 6% to Euro and Sterling has resulted in the price to increase. The current price levels for raw Guar splits ranges between 160 RPS – 180 RPS per kilo.

 

Supply

Stockists and farmers are holding stocks due to the unpredictability of how the unseasonal rains will impact the new crops and whether the current sowed crops will be damaged. This could result in stockists and speculators becoming more active and bullish for the remainder of the year.
Guar Gum at its present price levels is still one of the cheapest hydrocolloids in the market.

 

Demand

Based on the information we have received the demand from the oil sector is increasing every week and the majority of the stocks which were held in Huston to cater to this market, have been sold. Therefore we anticipate the oil drilling industry will be unfazed by the price fluctuations in the short-term.
Demand from the food and technical industries have not shown much improvement.

 

Outlook

Considering the current situation of supply and demand we expect the market to remain firm.

 

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