Polypro IndoPak Guar Market Report 7-5-16

The Monsoon continues to advance over the guar areas and rain is reported and forecasted for the coming weeks. The market reports that the combination of relatively early monsoon rains and persistently low guar seed prices are supporting the farmers desire to decrease guar acreage in favor of better priced crops like pulses, cotton, oilseeds, etc…  Some guestimates put the decrease at 50%. The IndoPak markets opened the week with spot and forward guar positions trading at a premium over last week. At this early stage, believe it is nothing more than wishful thinking as traders are trying to promote the expectation of higher guar seed prices next year.