In follow up to past reports, guar prices continue to climb and the IndoPak guar markets remain strong.
Just a few weeks ago export demand for food and O&G guar was reported as normal and the size of the new crop continues to be advertised as expected and possibly down 10 percent. Since June 2016 the USA O&G Rig counts remained flat and in the range of 907-958 (last week at 939). Interestingly, the volume of seed arrivals in India are up 12.5% when comparing the first 15 weeks of the seasons. As you may recall, the sudden drop off in 2016 was attributed to liquidity issues related to the demonization of 500 and 1000 Rupee notes. (seed arrivals 2016 v 2017.1-17-18)
Speculation on the future is the root cause of the price increase to the raw material (seed/split). Seed supply is tight as manufacturers compete against stockists for available seed/split. The most recent reports indicate modest export demand in the face of higher prices.
Please balance our comments with others.