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Indian chana rises on value buying, guar on thin supply
September 11, 2013 / 10:44 AM / 4 years ago

Indian chana rises on value buying, guar on thin supply

MUMBAI, Sept 11 (Reuters) - Indian chana, or chickpea, futures rose on Wednesday on value buying, supported by hopes of a pickup in local demand in the festival season.

* However, prospects of increased area under cultivation due to ample rains and higher stocks capped the gains.

* Chickpea is a rabi crop sown during winter. Farmers depend on rains to moisten the land for sowing.

* At 0933 GMT, the October chana contract was up 1.49 percent at 3,138 rupees per 100 kg on the National Commodity and Derivatives Exchange. It has fallen more than 5 percent since the start of the month.

* “Buying is very limited in the local markets despite the festive season because everyone expects prices to fall from these levels. Sowing is likely to be bumper as rains were very good,” said Anand Sarwade, a trader from Gadag in Karnataka state.

* Spot chana was steady at 3,100 rupees per 100 kg in Delhi.

GUAR

Indian guar seed futures were higher on a supply squeeze in the local markets and on demand from stockists and millers.

* Supplies have been falling from the old crop as farmers have held back on hopes of better prices and arrivals from the new season harvest, which would start rolling in by the month end.

* The October contract was 3.87 percent higher at 7,780 rupees per 100 kg on the NCDEX.

* “Sentiment is firm on higher demand from stockists and millers. Demand is there but availability is very thin and this is keeping prices firm,” said Surendra Kumar Yadav, a trader from Hanumangarh in Rajasthan state.

* At Jodhpur, a key market in Rajasthan, spot guar rose 307 rupees to 8,807 rupees per 100 kg.

* However, higher carry-forward stocks and expectations of a bumper harvest on an expanded area were seen weighing on prices at higher levels. (Reporting by Meenakshi Sharma; Editing by Prateek Chatterjee)

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