Guar Market & Indian Southwest Monsoon
Since our last update of 23-July-12, and especially in the week of 9-15 August, the Guar growing areas of Rajasthan and Gujarat received far excess rains as compared to the historic average for the same period in previous years. The map given below illustrates this point very well. More recently in the last 2~3 days there has been heavy rainfall in eastern Rajasthan. Parts of Jaipur city, and surrounding areas, were yesterday inundated with water. Apparently Jaipur has received its heaviest rainfall in the last 30 years.
These rains have not only made up significantly for the absence of rains in these areas in July, but have also given the farmers in western Rajasthan (a very important Guar growing region) the opportunity to finally sow Guar seed for this season.
Although it is too early yet for definitive crop estimates to be given out, we believe that a crop size of 20 million bags might be possible.
As a result of these favourable conditions Guar splits prices have declined as depicted in the graph below. Hence it is now an opportune time for customers to cover their requirements for Oct & Nov 2012 in case they have not already do so.
Report provided courtsy of PremcemGums.