May 30, 2013 / 9:38 AM / 4 years ago

India chana edges up; guar drops on hopes of higher sowing

MUMBAI, May 30 (Reuters) - Indian chana futures edged up on Thursday on lower-level buying supported by a pick-up in local demand, though estimates of higher production weighed on sentiment.

* The arrival period this season has been extended on account of record high production and a delayed start in harvesting.

* At 0921 GMT, the June contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.19 percent at 3,189 rupees per 100 kg. It had hit a contract low of 3,105 rupees in the previous trade.

* "A bounce-back is expected in chana as prices have fallen a lot. The June contract may touch 3,300 rupees in the next two-three days," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities.

* In Delhi, spot chana rose 25 rupees to 3,250 rupees per 100 kg.

* The output of chana, or chick pea, is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate, as against 7.70 million tonnes a year earlier.

GUAR

Indian guar futures dropped due to hopes of an expanded area under cultivation and better prospects of monsoon rains and higher production.

* India's monsoon rains are forecast to arrive on the southern coast around June 3.

* The June contract on the NCDEX rose 3.88 percent to 8,170 rupees per 100 kg. It had hit a contract low of 8,150 rupees on Wednesday.

* India's output of guar, a tiny seed with an outsize role in shale gas extraction, will rise this year as farmers boost planting acres in hopes of good rains, against a backdrop of attractive prices and resumption of futures trade, traders said.

* "Area under guar sowing is likely to increase because prices are attractive and monsoon is also expected normal this season," said Khan.

* Sowing of guar seeds usually starts at the beginning of June in irrigated areas, while farmers in non-irrigated areas begin at the end of the month. India's weather office has forecast an average monsoon in the country in 2013.

* At Jodhpur, a key market in Rajasthan, guar seeds dropped 253 rupees to 8,544 rupees. (Reporting by Meenakshi Sharma; Editing by Subhranshu Sahu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below