| And in a market where speculation always plays a crucial role in directing the price movement, 'will guarseed futures breach the Rs 2,200 (a quintal) mark' is a baffling question now. |
| Although demand has not picked up from guargum mills, the past fortnight has seen a jump of 7.64 per cent in prices of guar futures contracts. |
| They gained further to settle at Rs 2,101 a quintal today on the National Commodity and Derivatives Exchange. On Monday, the prices were at Rs 1,952 a quintal levels. |
| Market sources said with exports from Pakistan expected to end in two weeks, importers were likely to turn to India, adding "this might push the prices further up". Commodity analysts felt the Rs 2,200 level could be reached within a week. |
| However, the current rally in guarseed futures leaves traders a confused lot, and they think otherwise. "We do not see the prices going further up. There could be another push of Rs 15-20, but not more," said Navratan Daga, a Bikaner-based trader. |
| Another Rajasthan-based trader too expressed doubts over the present rally. "It is hard to understand why the prices are spiralling up. It seems stockists are playing a key role," he said. |
| At present, Bikaner has estimated stocks 4 lakh bags, while Jodhpur has 2-3 lakh bags. "The market may be bullish because arrivals are on the downhill. They have declined substantially to 48,000 bags a day from the peak of 60,000 bags a day," said Vedika More, commodity analyst with Angel Commodities. |
| However, for the time being, there was no substantial demand from mills, and the textile industry, too, was not buying guargum, she added. |
| "But the demand will emerge as the industry will have to buy," More said. |
| This year, the country's production of guarseed is estimated to be around 75-80 lakh bags, while it has a carryover stock of 15 lakh bags. |
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