March 20, 2012 / 8:38 AM / 5 years ago

India chana down on higher supply; guar up

MUMBAI, March 20 (Reuters) - Indian chana futures extended losses for a third straight session on Tuesday as rising supplies from new season crop in key northern states kept a lid on prices.

* At 1:58 p.m., the most active chana April delivery on the National Commodity and Derivatives Exchange (NCDEX) was trading down 0.66 percent at 3,770 rupees per 100 kg.

* "Arrivals in Rajasthan, though were delayed, are now rising and in Madhya Pradesh, it is already touching peak levels," said Chowda Reddy, a senior analyst with JRG Wealth Management.

* Chana, or chickpea, a winter-sown crop, is planted in October-November and is harvested in February-March.

* In the Delhi spot market, chana prices were unchanged at 3,600 rupees per 100 kg.

GUAR SEED

Guar futures rose 4 percent, the maximum permitted daily limit, to hit a record high in low volume trade as exporters scrambled for the commodity to avoid defaults amid low availability.

* The guar April contract was trading up 3.84 percent at 28,700 rupees per 100 kg, after hitting a record high of 28,750 rupees per 100 kg earlier in the day.

* Traders expect guar seed supply to fall short of demand by a quarter, which has been driving up the prices.

* "Fresh crop arrivals would start only in September, and we expect prices to remain firm till then," JRG Wealth's Reddy said.

* The export of guar gum, a byproduct of guar seed, used as sealant in oil and natural gas drilling, nearly tripled to 670,949 tonnes in April-November from 228,113 tonnes a year earlier, the government data showed.

* In the Jodhpur spot market, guar seed rose 502 rupees to 27,400 rupees per 100 kg. (Reporting by Deepak Sharma; editing by Malini Menon)

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