The Indian guar gum spot price was INR5,641.45 per quintal (USD74.4/kg) at Jodhpur wholesale market on June 23, 5.0% more than on May 26.

Guar gum's recovery is gradually strengthening after plummeting to INR4,908.35/quintal on April 27, a record fall, as the global oil industry crisis cut exports sharply. 

Indian guar gum exports fell by 55.6% in volume to 31,040 tonnes and by 43.8% in value to USD58.9 million from January-February 2020 compared with the same period in 2019, according to the Indian government.

Sharp fall in exports due to the global oil industry crisis

The US and China accounted for 27.5% and 12.9%, respectively, of the total exported volume against 36.8% and 27.1% in the same period in 2019. India is the only global supplier and the US oil industry has cut orders and the Chinese grocery industry has cut imports due to lockdown.

The daily futures market prices on India's National Commodity & Derivatives Exchange (NCDEX) were:

• Deliveries in June 2020 closed at INR5,612/quintal for deliveries on June 19, 3.5% more than on May 20.
• INR5,593/quintal for deliveries in July 2020 on June 22, 4.9% more than on May 26.
• INR5,641/quintal for deliveries in August 2020 on June 22, 4.8% more than on May 26.
• INR5,689/quintal for deliveries in September 2020 on June 22, 4.8% more than on May 26.
• INR5,737/quintal for deliveries in October 2020 on June 22, 4.7%% more than on May 26.
• INR5,785/quintal for deliveries in November 2020 on June 22, 4.6% more than on May 26.
• INR5,883/quintal for deliveries in December 2020 on June 22, 1.2% more than on June 1.

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.