After our last market report in March this year, prices have softened slightly. In between, there were the usual ups and downs.
The exchange rate Euro the dollar played a role after reaching a top of 1,14.
The situation concerning delivery and prices has not changed in India. The low prices continue to hurt the farmers and producers. Little quantities of raw material is brought to the market in the hope of influencing the demand to achieve higher prices.
The weather forecasts (monsoon) in the coming weeks are good. There already have been some rainfalls in the growing areas.
Due to the price decline guar is currently not a first choice for the farmers as long as there are alternatives. Other plantations are preferred, where better returns can be generated.
This will certainly lead to less plantation of guar gum, especially in areas with irrigation. The harvest volumes will not reach the previous year's level. First estimates expect about 20% less acreage.
The many people involved in the guar business are of the opinion that the bottom prices have been reached.
If demand from the oil industry and in the food sector increases slightly, which is not unlikely, prices will follow immediately. We therefore recommend to make long-term coverings.