March 14, 2012 / 9:48 AM / 6 years ago

India chana up on low arrivals; guar hits record high

MUMBAI, March 14 (Reuters) - India’s chana futures rose for the second straight session on Wednesday, following a firm trend in the spot markets due to the delayed and lower-than-expected arrivals in Rajasthan, a major grower, analysts said.

* At 3:08 p.m, the April chana contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.35 percent at 3,740 rupees per 100 kg.

* “Chana arrivals in Rajasthan is delayed and in some areas, where it has started, it is far below what traders were expecting,” said Chowda Reddy, senior analyst with JRG Wealth Management.

* Overall fundamentals for chana are bullish, and there could be a further rise in prices, Reddy said.

* The country’s chana production in 2011/12 is estimated to fall to 7.66 million tonnes from 8.22 million tonnes a year ago, the farm ministry said last month.

* In the Delhi spot market, chana rose 49 rupees to 3,604 rupees per 100 kg.

GUAR SEED

Guar seed futures rose 4 percent, the maximum permitted daily limit, to hit a new record high as exporters and traders struggle to buy commodity amid negligible arrivals and low carryforward stocks, analysts said.

* At 3:08 p.m, the April guar seed contract was locked at the record high of 23,600 rupees per 100 kg.

* “There is a shortage of guar seed. Its prices are expected to remain firm until fresh crop arrivals in September-October,” said Faiyaz Hudani, analyst with Kotak Commodity Services.

* Guar seed prices have been rising for the past few months due to a decline in production, lower stocks and very strong overseas demand. The prices have more than doubled since December.

* In the Jodhpur spot market, guar seed rose 802 rupees to 22,824 rupees per 100 kg. (Reporting by Deepak Sharma; Editing by Rajesh Pandathil)

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