Guar Gum

CPO is used to make bio-fuels and is influenced by the movement in crude oil; Guar gum fell because it is used in fracking, a method of extracting shale gas

Guar gum, a processed commodity made from guar seeds which was in 2012-13 top agri commodity in exports basket with $3.9 bn has lost all its lustre later but now there are some initial signs of it regaining part of the lost ground. From February onwards its price on NCDEX has shot up nearly 28 per cent, though it is now at number 10 in agri export basket, in quantity terms exports have registered growth in first three quarters of the current financial year and once a top contributor of volumes on NCDEX when its prices were nearly Rs. 1 lakh is again contributing sizable share.However to get back its old lost glory it has to travel a long road. For the time being revival of shale oil wells in US has found some demand for guar gum where it is used for smoothening drilling activities. After crude oil trading above $50 a barrel in US consistently for many months several shale oil fields are resuming or increasing production as it turns viable. Anuj GuptaAnuj Gupta, Head - Technical ...

Falling crude oil prices have hit the industry, as oil explorations have reduced globally.

Move has happened on the back of high inventory and low exports of the product

Around 60% capacity shut on plunge in prices since 2012 due to weak demand abroad, after the sharp decline in crude oil prices