Tuesday, September 3, 2013

important reasons to have Guar Seed Futures:

Uncontrolled and Uncertain Supply  

There is no Government regulation and restrictions affecting the Guar production and supply. The
price discovery is left to market forces based on the rainfall and acreage pattern.
Fluctuation and Uncertain Demand 

Demand from Domestic and International market is uncertain. The later depending on the crop in
Pakistan and US.
Homogenous nature with well-defined grades

The commodity has well defined grades and specifications for reference of trading and also to
facilitate physical delivery in cased if required.
Long storing period 

The commodity is subjected to long storage requirement based on market prices and overseas
demand.
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