India chana futures seen lower; guar up

MUMBAI, Nov 20 (Reuters) - India's chana futures are likely to snap a four-day gaining streak on Friday on profit-taking, but firm kharif pulses and improved spot demand due to concerns acreage may fall in a key producing state is seen limiting the losses, analysts said.

The area under chana may shrink this year in Rajasthan due to poor rainfall and a diversion towards rapeseed, traders said.

Chana acreage in Rajasthan as on Nov. 10 stood at 403,000 hectares compared to 726,000 hectares during the same period a year ago.

The December chana contract NCHZ9 on the National Commodity Derivatives Exchange ended up 0.34 percent at 2,690 rupees per 100 kg in the previous session.

GUAR:

Guar futures, which struck fresh contract highs in the previous session, are likely to open higher on estimates of lower crop and encouraging overseas enquiries, analysts said.

Active buying by stockists anticipating a further rise in prices is likely to push prices up, they added.

Poor monsoon has damaged nearly 70 percent of standing guar crop in Rajasthan, which accounts for four-fifth of the country's guar acreage. See [ID:nBOM490466]

The December guar contract NGUZ9 on the National Commodity Derivatives Exchange ended higher by 0.11 percent at 2,720 rupees per 100 kg, after hitting a contract high of 2,729 on Thursday. (Reporting by Rajendra Jadhav & Meenakshi Sharma; Editing by Harish Nambiar)