Short covering at the lower levels provided some support to guar seed prices on Saturday. Sentiments remained slightly weak in mandis as reports of some tension in the Indo-Pak border is creating apprehensions that the exports from India to other countries may be affected.
Selling pressure has increased due to expectations of more falls in rates. Not much bullish momentum is seen at present in guar seed until good export demand emerges in guar gum
It is to be noted that China is the biggest guar seed importer country and trading activities during first week of January is expected to remain subdued due to New Year vacation. Moreover, Trading activities are also likely to decrease from 20 December to 5 January due to holiday season in European countries though the advance deals continue to remain active during this period.
Export of guar gum is likely to decrease this year than its last year's figure of 215 thousand ton.
Source : Commodityonline