Guar seen moving in tight range

Guarseed and guargum futures will be guided by the monsoon progress and will move in a tight range during the coming week, analysts and traders said.

"Traders are awaiting the arrival of rains in Mumbai, expected by Sunday. Any further stagnation in the monsoon progress would mean a delay in arrival in Rajasthan," said Prerna, analyst, Man Financial Commodities.

However, the India Meteorological Department today said that monsoon would strengthen in the next 2-3 days impacting prices negatively.

Rains hit the Indian coast four days earlier than expected leading to bearish sentiment in anticipation that the monsoon would arrive early in Rajasthan, a major guar producing state.

This would in turn, lead to an early start to the sowing activities of the commodity.

"If rains are on time, then traders expect them to hit Rajasthan by June 20 which means sowing will start soon," said Rajkumar Jain, a Rajasthan-based trader.