Topics in this issue:

  Market report Guar gum
  Market report Locust bean gum
  Market report Psyllium

Market report Guar gum

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.

Dietmar Neupert

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Market report Locust bean gum

The new harvest begins in a few months and the harvest forecasts are encouraging. 

Initial estimates forecast a harvest of around 36,000 t. This is a significant increase over the previous year.

After the poor harvest last year, accompanied by price increases, we expect slightly more favorable prices in the months of October / November. By this time, the seeds have arrived and the total amount of material available from the main growing countries Morocco, Spain, Turkey, Italy and Portugal can be estimated.

Currently the prices are relatively fixed. From the last harvest very little raw material is available.

The demand for organic locust bean gum has risen remarkebly with the result that very few seeds are available. We expect more stable prices with the new harvest, taking the extension of additional acreage into account.

Purchases for the need until October should be made now. For amounts beyond this period, we recommend waiting until the new crop comes to the market.

Alexei Justiz

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Market report Psyllium

In early April reports of a poor harvest were spread on the market, which caused that the psyllium prices came under severe pressure. 

Some manufacturers estimate that nearly 60 % of the total harvest have already arrived. Whether the price increases from the last weeks will withstand depends on how the export demand develops. 

Due to the high uncertainty in the market, a shift in demand can be currently observed. Many of the major pharmaceutical customers have not yet completed their annual volumes.

Side effects of this development are short-term price fluctuations. Nevertheless, we don’t expect any major changes this year. 

Sabine Justiz

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Neupert Ingredients GmbH
In der Boerse 9 | D-21441 Garstedt | Germany
Tel.: +49 4173- 51591 - 0 | Fax: +49 4173 51591 - 99
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