Slight bullish sentiments continued to prevail for Guarseed on Thursday. Better demand at the lower levels and lower arrivals in the mandis provided support to the prices. Exports failed to pick up significantly however and that is pressurizing prices.
Stockiests are unwilling to sell at current low rates in Rajasthan – as per mandi reports. Accumulation of stocks by millers and exporters reported. Arrivals expected to remain low. Better demand for the by-products churi and korma has been reported.
Any renewed tension with Pakistan could have an adverse effect on the sentiments, as the exports would be affected.
There are expectations of exports picking up in the medium term. Stronger Dollar can help in improving demand – mainly from Europe and China. But, as of now, exports have remained low. Recession in Intl markets has affected export demand from India and bearish trend is likely to continue if exports do not pick up.
Source : Commodityonline.com