In our last Guar Market Update sent on 1st June 2010 we had informed everyone that “Guar Gum prices are more or less at the same level as that in mid April 2010. We believe this to be a buying opportunity and recommend that users cover a small part of their Guar Gum requirements at this stage.”
Quite a few of our customers went ahead with our recommendation and covered some part of their requirements at this stage. This was a good move as very soon after our update the price for Guar Splits started moving upwards and then peaked around mid-July. The price for Guar Splits moved up from around USD 1090 PMT to USD 1235 PMT.
We are now pleased to inform you all that the Southwest Monsoon has progressed very well over the Guar growing areas of India and as per current reports there should be a good Guar crop this year. As a result Guar Splits prices are back at the levels at which they were around 8th June. This again is a buying opportunity. We therefore recommend that our customers cover their spot requirements at this stage and then await the arrivals from the new crop.
Provided with permission by Premcem Gums Pvt. Ltd.