Topics in this issue:

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

Market report Psyllium

The harvest in spring of the year shows significantly lower yields than in previous years.

No crop damage was detected, but there was less area under psyllium cultivation, as farmers achieve better yields with other agricultural products and therefore grow less psyllium. In Madhya Pradesh only 50% of the previous year's quantity was harvested, in Rajasthan about 15% less. However, Gujarat is twice as high as last year, but the amount there is relatively small.

Quantities in annual comparison:

Translated with (free version)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1,35 1,40 1,35 1,40 2,24 1,70 1,70 2,70 1,75 1,50
(millions of bags, 1 bag = 75 kg)

If the decline in 2020 is only 15% compared to 2019, it must be taken into account that the global annual demand has increased significantly, so that lower prices cannot be expected due to the higher demand.

The worldwide demand is about 2.2 million bags (approx. 165,000 tons).

The harvest results in approx. 1.5 million bags plus a surplus from the last harvest of approx. 0.2 million. Together, this results in an available quantity of 127,500 tons.

The higher prices will probably cause a decrease in demand in some application areas. However, the difference in volume clearly shows the situation and underpins the forecast for a further high price structure.

Alexei Justiz

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Market report Guar gum

The necessary rainfalls in the main growing areas of Rajasthan and Gujarat have occurred in the last weeks and lasted until the beginning of September. This was absolutely necessary to promote the growth of the plants.

At present, however, the climate in most areas is rather dry. In view of the smaller areas under cultivation compared to last year, this year's harvest will accordingly be somewhat smaller. Several thousand bags of guar seeds of the already brought in harvest from the artificially irrigated areas in northwest Rajasthan have already arrived at the markets.

Supply shortages are not expected as the demand of the main customers for guar gum from the U.S. oil industry has decreased significantly due to the global corona pandemic. In addition, there are large overhangs from the last harvest.

The corona pandemic remains a major issue in India. The temporary closures of factories have had major social and financial consequences.

There are currently no obstacles to the shipping of containers.

We consider cover purchases for Q1 and possibly already for Q2-2021 to be acceptable.

Sabine Justiz
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Market report Locust bean gum

In the countries of origin Spain, Italy, Portugal and also Turkey the harvest will be normal.
Only Morocco reports lower crop yields.

The prices for raw materials (carob seeds) will remain more or less unchanged at a high level in this harvest period as well. We do not expect any relaxation in the coming weeks and months.

Since most kibblers start the new season with empty warehouses without any overhangs from the last harvest, stocks are initially built up and not immediately brought to market.
This alone will keep prices stable.

We do not expect any relaxation in the coming weeks and therefore anticipate a continued very high price level.

The harvest will be completely run in over the next few weeks. We will see how the market develops up to then on the basis of demand and available supply.

Ricardo Pietruschka
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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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