MUMBAI, June 20 (Reuters) - Indian chana futures edged up on Thursday tracking steady spot demand, with analysts expecting spot buying to improve further at lower prices, though higher-than-expected supplies and the good progress of the monsoon capped the gains.
* Monsoon rains have covered the entire country a month ahead of schedule.
* Supplies of chana, or chickpeas, have started slowing down from the major cultivating states except Rajasthan, where arrivals are still higher than expected, traders said.
* The July chana contract was up 0.22 percent at 3,240 rupees per 100 kg on the National Commodity and Derivatives Exchange (NCDEX) at 0909 GMT. It fell more than 16 percent between the contract high touched on April 15 and Wednesday's close.
* "It is expected to trade in a narrow range but downside would be limited in anticipation of demand from millers at lower prices," said an analyst from Kotak Commodities.
* Spot chana edged up 2.5 rupees to 3,200 rupees per 100 kg in Delhi.
* Chana output 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.
Indian guar futures fell due to the sluggish demand for exports and hopes of higher area under cultivation, while a good progress of the monsoon also added to the downside.
* The July guar contract on the NCDEX fell 0.85 percent to 7,040 rupees per 100 kg.
* "Farmers are going to expand the area under cultivation and rains are also good so far," said Surendra Kumar Yadav, a trader from Hanumangarh, Rajasthan.
* Guar seeds fell 162.5 rupees to 7,300 rupees at Jodhpur in Rajasthan.
* India's output of guar, a tiny seed with an outsized role in shale gas extraction, will rise this year as farmers boost acres in hopes of good rains against a backdrop of attractive prices and resumption of futures trade, traders said.
* Sowing of guar seeds usually starts at the beginning of June in irrigated areas, while farmers in non-irrigated areas start sowing at the end of the month. (Reporting by Meenakshi Sharma; Editing by Jijo Jacob)