Guar likely to dip

COMMODITY SPIKES

The guarseed market was in the doldrums last week, owing to rains in parts of Rajasthan. Traders and analysts indicated that the commodity might not see any upward trend in the near future. The market expects a bumper crop this year, with an increased acreage in the Haryana-Ganganagar belt.

The weather forecast suggests that western Rajasthan may witness another spell of showers in a week. "At present, spot rates in Bikaner are around Rs 1,640 a quintal. With a favourable weather for sowing, we expect the market to slip below the Rs 1,600 mark as well this season," said Sanjay Periwal, a Bikaner-based trader. Sowing is likely to be completed by a fortnight.

Marketmen expect an arrival of around 65 lakh bags from Punjab, Haryana and Rajasthan's Ganganagar this season compared with 40 lakh bags during the last season. "The crop this year may reach 1.25 crore bags," said a trader. Gujarat and some parts of Madhya Pradesh will also contribute to the excess crop, taking the market down.

On the National Commodity and Derivatives Exchange (NCDEX), the near-month contract slipped to Rs 1,678 a quintal on Saturday against the previous week's close of Rs 1,734, down by over 3 per cent.