India chana seen opening steady; guar higher

MUMBAI Jan 25 (Reuters) - India's chana futures are likely to open steady on Monday as lower level buying is seen offsetting a likely rise in production and rising arrivals in physical market amid weak demand, analysts said.

India's chana acreage as on Jan. 21 stood at 8.68 million hectares, compared with 8.23 million hectares in the same period a year ago.

Ample carry-forward stocks, weakness in kharif pulses and fears of government intervention are also seen putting pressure on prices, they added.

The benchmark February futures contract NCHG0 on the National Commodity Derivatives Exchange ended up 0.78 percent at 2,315 rupees per 100 kg in the previous session.

The February contract has fallen above 20 percent since hitting a high of 2,896 rupees on Nov. 6.

GUAR:

Indian guar futures are likely to open higher on lower-level buying driven by estimates of lower output, offsetting rising stocks and subdued overseas demand for guar gum, analysts said.

The February guar seed contract NGUG0 on the National Commodity Derivatives Exchange ended at 2,385 rupees per 100 kg, up 2.40 percent in the previous session.

In top guar producing Rajasthan state in 2009/10 output is likely to drop by 80 percent to 241,000 tonnes as scanty rains trimmed area and yields.

The most traded February contract NGUG0 has fallen over 15 percent since the start of the month till Jan. 23. (Reporting by Rajendra Jadhav & Meenakshi Sharma; Editing by Sunil Nair)