Bearishness grips guar

COMMODITY SPIKES

Guarseed futures and spot markets tumbled by over 7 per cent in the last week, and the week ahead picture doesn't look rosy either.

"A combination of factors including weakening dollar, expected normal monsoon and rumours of guargum futures getting banned are wrecking havoc in the guar market," said an analyst with Agriwatch Commodities.

As guar market is controlled by the exports of guargum to the US, China and European countries, the continuous rupee appreciation is discouraging exporters.

"There are export orders, but benefits are not being reaped as rates of guargum in the export market have declined, and the impact on guarseed is being felt," said sources.