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Market overview

Prices of Guar Gum have increased due to damaged crops, low arrivals and speculator activity.

 

 

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The arrival of seeds in the market is chaotic and slow. The seeds that are currently coming in the market are damp and damaged, which is incentivising speculators to be more active in the purchasing of stock. This has resulted in the prices being pushed up.
Further exacerbating the increase is lower than anticipated supply; projected crop yields before the monsoons were 30 m bags and is now estimated to be 12.5 m bags.

 

 

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There has been steady demand from the food and technical industry however demand from the oil drilling industry has been low and will remain so until the prices of crude oil increase. We have received reports that monitor shale gas exploration and from the 1300 shale gas wells that were in operation in 2012, only 800 are still active. Such low oil prices have resulted in this business model collapsing; currently the shale gas/oil exploration companies are haemorrhaging cash to try and ride out these low prices.

 

 

Outlook

Considering the fact that the crop predictions were over estimated and the increased speculators activity, we anticipate the prices to increase further; unless the supply of seeds in the market increases considerably.

Our stocks are listed below, If you have any requirements now or in the future please contact us via phone, email or our website.

 

Our Stocks 

Drilling grade: 35-40 and 40-45
Food grade: 200 mesh 3500 cps
Technical grade: 200 mesh 5000 cps

Available for shipment 

Drilling grade: 200 mesh 7000 – 8000 cps
Food or Technical: 100 mesh 3000 – 4000 cps
200 mesh 3500 – 6000 cps
300 mesh 3500 – 5000 cps

 

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