During the week guar price continued to be on higher level, but now it is range bound i.e. Rs. 400/kg +/- 10/kg.  During the week NCDEX imposed additional margin of 10% totalling to 82.5% on buying and about 23% on selling to stabilize the market.

However, it appears that now the market looks to settle on or around Rs. 400/kg but there is no aggressive buying at this price level.  At the same time there is no selling pressure which also indicates inventory level started reducing and seed/splits suppliers are still bullish at this price level. 

Powder manufacturers are buying regularly but limited quantity at current price level which should be against new business since they will not like to carry high priced inventory without any business.

We foresee the current price level may maintain for long with some volatility depending on buying and selling pressure.