December 31, 2013 / 9:00 AM / 4 years ago

Indian guar falls on higher output hopes; chana edges up

MUMBAI, Dec 31 (Reuters) - Indian guar seed futures fell on Tuesday due to fresh supplies from the new harvest, expectations of higher output and sluggish demand.

* The January contract was down 1.23 percent at 4,420 rupees per 100 kg on the National Commodity and Derivatives Exchange (NCDEX) at 0853 GMT.

* “Prices are likely to trade in a range as the estimate of higher production is weighing on sentiment,” said Surendra Kumar Yadav, a trader from Hanumangarh, Rajasthan.

* However, demand for guar gum, a by-product, is expected to rise from the food sector at lower prices, industry officials said.

* Industry experts expect guar seed production to be 2.5-2.7 million tonnes in 2013, up from about 2.2 million tonnes a year earlier.

* Spot guar fell 39 rupees to 4,373 rupees per 100 kg at Jodhpur, a key market in Rajasthan.

CHICKPEAS

Indian chana, or chickpea, futures edged up on expectations of a pick-up in local demand though large stocks and prospects of a better crop weighed on sentiment.

* There are some concerns over a shift in acreage in Madhya Pradesh, the key producing state, spot traders said.

* The January chana contract edged up 0.20 percent to 3,072 rupees per 100 kg on the NCDEX.

* “Bargain buying may support prices at lower levels. However, adequate stocks could limit upside,” ADMISI Commodities said in a research note.

* Spot chana edged up 6 rupees to 2,936 rupees per 100 kg in Delhi.

* The January contract may test resistance at 3,102 rupees, the note said.

* As on Dec. 19, farmers have planted pulses on 12.68 million hectares as compared with 12.12 million hectares in the same period a year ago, according to the farm ministry. (Reporting by Meenakshi Sharma; Editing by Anupama Dwivedi)

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