Guarseed settled flat pressured by the amount of supplies arriving at wholesale markets and by concerns economic turmoil in the United States and Europe could trim export demand. Arrivals are gaining momentum in spot markets and are putting pressure on prices, though lower stocks with traders could provide some support to falling prices. Guar seed arrivals, which were delayed due to unseasonal rains in October, have been rising in all key spot markets in the top producing state, Rajasthan. Guar gum, a by-product of guar seed, is used as a controlling agent in oil drilling. The biggest importers of guar seed are the United States and Europe -- where growth is spluttering in the face of economic turmoil and heavy debts. The total arrivals slipped by 5,000 to 80,000 bags as on 14th November 2011 (mandis in Rajasthan reported around at 55,000 and Haryana around 25,000 bags) against 85,000 bags reported previous day. In Jodhpur guarseed prices dropped -0.65 rupees to 4182.55 rupees per 100 kg. Market has opened at 4148 & made a low of 4077 versus the day high of 4183. The total volume for the day was at 179520 lots and the open interest was at 175120.Now support for the guarseed is seen at 4096 and below could see a test of 4033. Resistance is now likely to be seen at 4202, a move above could see prices testing 4245.

Trading Ideas:

Guarseed trading range is 4033-4245.