Guar Seed : The Golden hen was Killed

[agrootec]

The oil companies are no more demanding the Indian Guar Gum. As per the current information the company has find out the possible alternate of guar gum. One of these alternate is natural and another alternate is synthetic.
The oil companies were expecting the guar gum rate come down.

They found it better to invest in R& D instead of paying huge amount to Indian exporters. The Indian govt took right step to de-list the guar Gum, but some profit centric people miss leaded the farmers and asked the farmers to not to supply the guar gum in the local market. This condition leaded to the dead lock. The farmers were not selling and the buyers were not buying.

This dead lock condition leaded to the exporter toward the not buying the guar gum from India. The guar crop could have given best result to the growers in long term. But it was a suicide step by the speculators and farmers. Now the Oil industry will totally make the guar gum away from the industries.
For a short profit centric artificial supply shortage leaded to this condition. Guar was a golden Hen which was killed by its owner. This is also a warning for other industries also.

Not the farmer and stockist will face a huge loss. It is expected that very soon the the rate of guar gum and Guar seed will comes its normal level.

 

[agrootec]

The last natural level of guar seed was INR Rs 3200/qt before demand from the Natural gas industry

 

[cyborg_jp]

The oil companies are no more demanding the Indian Guar Gum. As per the current information the company has find out the possible alternate of guar gum. One of these alternate is natural and another alternate is synthetic.
The oil companies were expecting the guar gum rate come down.

They found it better to invest in R& D instead of paying huge amount to Indian exporters. The Indian govt took right step to de-list the guar Gum, but some profit centric people miss leaded the farmers and asked the farmers to not to supply the guar gum in the local market. This condition leaded to the dead lock. The farmers were not selling and the buyers were not buying.

This dead lock condition leaded to the exporter toward the not buying the guar gum from India. The guar crop could have given best result to the growers in long term. But it was a suicide step by the speculators and farmers. Now the Oil industry will totally make the guar gum away from the industries.
For a short profit centric artificial supply shortage leaded to this condition. Guar was a golden Hen which was killed by its owner. This is also a warning for other industries also.

Not the farmer and stockist will face a huge loss. It is expected that very soon the the rate of guar gum and Guar seed will comes its normal level.

I agree with you. Can you provide us the source of your information? Are you part of the supply chain of guar?

 

[agrootec]

I am not part of this system I am a commodity expert , since one year i was working on Guar Guar Seed and Guar Gum. I was not expecting this type of the dead lock. These are following reason which are making the situation problematic.

As today not a single gum factory is processing the Guar Seed Into guar gum. Stocking is the main part of this processing no one would like to stock at this fluctuating price.

There are no fresh order of guar gum export from the international buyer

The financial of Guar Gum companies will explain you all the situation.

There is continuous down fall in the stock of the companies since 6-7 months.

Please read the article regarding the replacement and down fall in export.


Guar gum exports to fall as drillers seek substitutes



India’s exports of guar gum, a thickening agent used for oil and gas extraction, may drop for the first time in three years after a record surge in prices forced drilling companies to seek cheaper alternatives.

Shipments may decline as much as 30% in the year that began on April 1 from 650,000 tonnes a year earlier, said P.K. Hissaria, president of the Indian Guar Gum Manufacturers Association. Exports in the six months through September were about 100,000 tonnes and sales will accelerate from this month with the arrival of the new crop, he said.
Falling exports may weigh on prices, which have slumped about 63% since reaching a record in March, lowering costs for oil and gas drilling services companies including Halliburton Co. and Baker Hughes Inc. Lower prices will allow food companies easy access to a raw material that’s also used as an ingredient in food emulsifiers, additives and thickeners. “Low demand and high supply translates into lower prices,” said Charlie Blanchard, an analyst with Bloomberg New Energy Finance. Guar gum rallied more than ninefold in one year to Rs.95,920 per 100kg on the National Commodity and Derivatives Exchange Ltd in Mumbai, forcing the commodity market regulator to suspend futures trading in March. The rally boosted costs for Halliburton, the world’s largest provider of hydraulic fracturing services, chief executive officer Dave Lesar said in a conference call with analysts on 17 October.

Halliburton and Baker Hughes help companies drill and complete oil and gas wells using a pressure-pumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations. Guar is made into a thickening gel used to carry sand down a well and into the cracks created from fracturing.

India accounts for more than 70% of the global production of guar, which means cow food in Hindi, according to the Multi Commodity Exchange of India Ltd. The seed is also grown in Pakistan and the US.

“Spot prices have slumped to $6,500 a tonne since India banned futures trading and on expectations of a bigger crop,” said Mitul Shah, managing director of Rama Industries, India’s third largest shipper. Oil and gas drilling companies will use guar only if prices were about $5,500 a tonne as alternatives such as carbon methyl cellulose were available at lower prices, he said.

Higher inventories with the drilling companies and slowing drilling activities had reduced demand for Indian guar gum supplies, Shah said.

“Moving into next year, we expect a reduction in guar costs as we take deliveries of new lower-cost inventory, which we believe will translate into a tailwind to our PE margins in 2013,” Halliburton’s Lesar said. Halliburton has developed an alternative to guar gum called PermStim that’s highly competitive in the event of future guar cost escalation, Timothy J. Probert, president for strategy and corporate development, told analysts.
Guar seed production may climb to as much as 2.5 million tonnes this year, enough to make at least 600,000 tonnes of guar gum, from about 1.5 million tonnes in 2011-12, manufacturers’ association’s Hissaria said. “The harvest has begun and arrivals will gather pace from the end of this month,” he said. Bloomberg




Farmer must take wise decisions instead on making loss for them selves

 

[agrootec]

Guar Seed Price Down In Jodhpur Mandi



Capital Market / 14:24 , Dec 24, 2012
The Guar Seed arrivals in the Jodhpur mandi stood steady at 50,000 bags. The spot price of Guar Seed quoted at Rs 12,600 per quintal, down by Rs 200 per quintal. While, Guar gum quoted at Rs 37,000 per quintal, down by Rs 800 per Quintal.

Powered by Commodity Insights

 

[agrootec]

Guar Gum Prices Down in Spot Market Update: Guar seed price down in Jodhpur mandi

MoM Team / Mumbai, Dec 24, 02:24 PM

The Guar Seed arrivals in the Jodhpur mandi stood steady at 50,000 bags. The spot price of Guar Seed quoted at Rs 12,600 per quintal, down by Rs 200 per quintal. While, Guar gum quoted at Rs 37,000 per quintal, down by Rs 800 per Quintal.



Spot Market Update: Guar seed price down in Jodhpur mandi | Market on Mobile[/url]

 

[agrootec]

Guar Gum Prices Down in Spot Market Update: Guar seed price down in Jodhpur mandi

Guar Gum Prices Down in Spot Market Update: Guar seed price down in Jodhpur mandi

MoM Team / Mumbai, Dec 24, 02:24 PM

The Guar Seed arrivals in the Jodhpur mandi stood steady at 50,000 bags. The spot price of Guar Seed quoted at Rs 12,600 per quintal, down by Rs 200 per quintal. While, Guar gum quoted at Rs 37,000 per quintal, down by Rs 800 per Quintal.


Spot Market Update: Guar seed price down in Jodhpur mandi | Market on Mobile[/url]

 

[agrootec]

Guar Seed (Guar Gum) :No takers for India Guar gum on higher prices

Please Read The Article for Guar Gum


The demand for guar is poor in international market due to higher prices. Also, importers are not willing to buy Indian guar seed or guar gum at higher prices, instead they are looking for cheaper alternatives.

]No takers for India Guar gum on higher prices

NEW DELHI (Commodity Online): This year India's guar seed prices are witnessing a huge up tick movement in recent weeks and both guar seed and gur gum have recorded around 50 percent rise in their spot market prices.
Industry sources say that guar farmers are hoarding their products to earn higher market prices by creating artificial scarcity.


Guar seed spot market prices are around Rs. 12,000 to Rs. 13,000 per 100 kg and guar gum prices are ranging around Rs. 39,000 per 100 kg.


Guar seed prices have surged from a level of Rs. 2,422 per 100 kg in 2010-11 to Rs. 29,000 per kg in 2011-12 and gum prices had touched a high of Rs. 100,000 per 100 kg.


This year guar seed production is expected around 8 mn bags to 20 mn bags (each weighing 100 kg).


Right now, importers are not willing to import either guar seed or guar gum at higher prices from India and due to this Indian guar processors are losing their export market.


The demand for guar is poor in international market due to higher prices. Also, importers are not willing to buy Indian guar seed or guar gum at higher prices, instead they are looking for cheaper alternatives.


Oil and gas drilling companies will use guar only if prices were about $5,500 a ton as alternatives such as carbon methyl cellulose were available at lower prices.


Guar seed production may climb to as much as 2.5 mn tons this year, enough to make at least 600,000 tons of guar gum, from about 1.5 mn tons in 2011-12.

The crop area under guar is estimated to have increased 56 percent to about 5 mn hectares this year in three major growing states of Rajasthan, Haryana and Gujarat.


India accounts for more than 70 percent of the global production of guar it is grown in dry regions of India. The seed is also grown in Pakistan and U.S.A.

In financial year 2012, guar gum was the top performing export commodity with export of about 700,000 tons worth $3 bn.