Guar Gum market report – September 2022
By Oliver Hewett
As you may be aware the guar prices fell steeply in the last few months. The decrease in price was mainly due to very good rain and good sowing in all guar growing areas, even the desert lands received good rain. The crop output estimated for current year is 15 -17 million bags as against 7 million bags in the previous year. The demand is holding at an average.
In the recent few trading sessions, the price for guar gum shot up by 10%. It was due to a weak monsoon forecast for the month of September 2022. There is still a month to go before the crop is ready and a long dry spell will impact the crop output adversely. The market is currently holding at a balance.
Rainfall in coming days will push the price back lower and if not, the prices may increase in coming days. In our opinion the price should hold its current level and will further be impacted once new crops start coming to the market. We do not expect a sharp rise in price for next year as per the current demand in the market.