Guar seen range-bound amid low arrivals

Guar seed and guar gum prices on the National Commodity and Derivatives Exchange are likely to be range-bound in the week ahead, amid lower fresh arrivals and subdued overseas demand, traders and analysts said.

"Daily average arrivals in the spot market have reduced to 10,000-15,000 bags (1 bag=100 kg) from 20,000 bags a week ago and is expected to decline further in the coming days," said Kanhaiyalal, a Jodhpur-based trader. This may slightly support prices.

"However, all-time high warehouse stocks of over 62,500 tonne compared with over 61,700 tonnes a week ago in the NCDEX-accredited warehouses will weigh on prices and limit the sharp upward movement in prices," said an analyst at Motilal Oswal Commodities.

Stockists are buying in spot markets and storing in exchange warehouses in anticipation of higher prices, traders said."But, unless any major export demand emerges, prices are expected to move in a narrow range of Rs 1,750-1,820 a quintal next week," said Karvy Comtrade Analyst Chowda Reddy.

Reddy also said breaching of any of the above levels will only decide the clear direction of prices.

Spot prices of guar seed and guar gum are also likely to be range-bound in a band of Rs 40-70 in the coming days tracking futures market.

Today, guar prices in the Jodhpur spot market were at Rs 1,718.90, Rs 6 lower from Wednesday, while guar gum was at Rs 4,280.70, down Rs 8.

Bikaner guar seed prices were at Rs 1,718.90, down Rs 5 from previous close.

Currently, guar seed and guar gum futures are trading in red amid thin trade and huge stocks in exchange-accredited warehouses.