The crops are now being harvested and are arriving in the market for sale. The indian rupee has also weakened against the dollar.
The current supply of Guar seeds in the market, are below the levels brought to market during the same period last year. Therefore speculators have pushed up spot prices. If this trend continues we can expect the price for the commodity to increase.
The demand from the food and oil industry has steadily increased over the last couple of months. We expect further demand form the food industry as the companies need to cover themselves for production during the christmas period.
The current supply of Guar Gum is uncertain, if this status quo continues, we will expect prices to remain firm for the foreseeable future.