Unpredictability in the third round of the monsoon in Western India, Increased demand from the oil sector and speculator activity have all contributed to the price increasing by $300.00 per ton in 14 days.
Uncertainty and demand within the Guar processing market, have resulted in the supply of Raw Guar splits to reduce. However based on the calculations for expected demand, the current plantations should be more then adequate to fulfil normal requirements from the food, oil and technical industries.
There has been Increased demand from the shale gas industry in U.S.A, China and Australia. The food and technical industries have experienced steady demand which is unchanged from our previous market report.
If precipitation is less than expected in the third round of the monsoon, then this could effect supply pushing the prices for Guar Gum up even more.