July 23, 2026
Rantec Guar Report
The guar gum market remains relatively unchanged since our last report. Although the market experienced an increase of approximately $70/MT last week, rainfall in Rajasthan over the past couple of days has erased those gains. Traders remain moderately active, while manufacturers continue purchasing product to meet immediate demand. The market is looking for direction as participants closely monitor rainfall in western Rajasthan. Attached is a graph depicting guar split prices over the past several years.
The southwest monsoon progressed northward and covered the entire country on July 9, right on schedule. Cumulative rainfall across India is currently 17% below normal, while Northwest India (the primary guar-growing region) is 10% below the long-term average. The India Meteorological Department (IMD) is forecasting above-normal precipitation across Northwest India over the next seven days.
Planting has commenced; however, as of last week, western Rajasthan had yet to begin sowing. This region accounts for approximately 50% of India’s total guar production, making the timing of rainfall there particularly important.
Section 122 tariffs are scheduled to expire tomorrow. Coincidentally, the U.S. Trade Representative’s Office is also scheduled to release the results of its Section 301 investigation regarding forced labor. The Trump administration has previously indicated that tariffs in the range of 10% to 12.5% are likely.
Ocean freight rates have continued to rise steadily. This week, rates have nearly doubled and are expected to increase further in August. Freight costs are rapidly approaching levels last seen during the COVID-era supply chain disruptions. Attached is a graph showing general ocean freight rates from 2022 to the present.
We will continue to monitor market developments closely as conditions evolve.
Please let us know if you have any questions or would like to discuss current market conditions in more detail.
Rick Bilodeau