Guar Gum contracts continued an upward circuit on strong fundamentals, supported by upbeat export demand. So much so that the Forward Markets Commission (FMC), the commodity markets regulator, again raised trade requirements, to dampen the race.
The commodity is used as a thickening and binding agent in the food, textiles, paper and pharmaceutical sectors, and in the oil industry for drilling of crude oil.
In 2011, the price of guar seed has risen 211 per cent and of guar gum by 290 per cent, despite the levy of special cash margins on long positions in guar futures.
Against the total estimated output of 1.5 million tonnes (MT) last year, the guar seed crop size is forecast to remain at 1.25 MT this year. With little carryover stock left from last year, the commodity is expected to remain in short supply this season. India supplies 97 per cent of global demand, through export of 400,000 tonnes of guar gum. The guar seed deficit is presently estimated at 20 per cent.
Please find today’s Update Rates:
Guar Gum Split: $8200/MT FOB Mundra Port
Guar Meal Korma: $320/MT FOB Mundra Port
Guar Meal Churi: $305/MT FOB Mundra Port
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