MUMBAI, Aug 5 (Reuters) - Indian chana, or chickpea, futures were higher on Monday tracking firm cues from the spot market where demand improved at lower levels, though hopes of higher summer-sown output limited the upside.
* The September contract was up 2.32 percent at 2,866 rupees per 100 kg on the National Commodity and Derivatives Exchange (NCDEX) at 0925 GMT. It has lost more than 13 percent since the beginning of July.
* "For the week ahead, chana prices are expected to extend gains on emerging festive demand. Selling pressure in the spot market has declined," Kotak Commodities said in a research note.
* Traders expect spot demand to stay firm due to increase in demand in the holy month of Ramadan and ahead of Raksha Bandhan, a local festival.
* Spot chana edged up 11 rupees to 2,911 rupees per 100 kg in Delhi.
* The NCDEX levied a special margin of 5 percent on short positions of chana from July 27.
Guar seed futures fell more than 2 percent, weighed by hopes of higher output due to expanded area under cultivation and favourable weather.
* The October guar contract was down 2.01 percent at 4,390 rupees per 100 kg.
* "Production is going to be higher this season because weather conditions are favourable. Buying is poor and prices are likely to remain under pressure because stocks are quite high," said Surendra Kumar Yadav, a trader from Hanumangarh, Rajasthan.
* Rajasthan, the country's top guar seed producing state, has received more rainfall than normal since the beginning of the monsoon on June 1, giving a boost to sowing operations.
* Guar seed fell 100 rupees to 5,600 rupees at Jodhpur in Rajasthan. (Reporting by Meenakshi Sharma; Editing by Sunil Nair)