Speculation on output drives up guarseed

Speculation triggered by increased uncertainty over the actual production of guarseed was driving the market up, traders said. They, however, ruled out the possibility of the bullish trend lasting long.

Market sources said speculation of high demand from China was also contributing to the current rise in the prices.

"At present, prices are not being decided by the demand-supply factor, rather it is the prevailing speculation over the production which is pushing the prices up," said Bikaner-based trader Navratan Daga.

Currently, guarseed prices in Bikaner's spot market are in the range of Rs 1,700 a bag (of 100 kg). Incidentally, the prices fell to a low of Rs 1,530 on speculation of high production earlier this month. However, the prices have firmed up over the last one week.

A section of bullish traders pegs the country's production this year at 60-65 lakh bags, while those who have been maintaining a bearish sentiment are sticking to their earlier estimate of 80-85 lakh bags.

Several parts of western Rajasthan "� the largest producer of guarseed "� received substantial levels of rainfall last month. But, for the last couple of days, they have experienced lower rainfall. Traders were of the view that one more round of rains was essential for good crop.