August 27, 2013 / 8:38 AM / 4 years ago

India guar rises on thin supply; chana falls

MUMBAI, Aug 27 (Reuters) - Indian guar seed futures hit their maximum intra-day upper limit on Tuesday on concerns that rains could delay arrivals from the new season crop, while slack supplies in the local market supported the upside.

* Farmers have held back supplies of guar from the old crop on hopes of getting better prices later.

* At 0820 GMT, the October contract was up 4 percent at 5,000 rupees per 100 kg on the National Commodity and Derivatives Exchange.

* “Heavy rains in the leading growing states are expected to delay new season arrivals by around 10-15 days,” said Chowda Reddy, a senior analyst with Inditrade Derivatives and Commodities.

* Rajasthan, the top guar producing state, has received more rainfall than normal this season, weather department data showed.

* Some traders worry the quality of the crop could be hit if leading cultivating states continue to get heavy rains in the coming days.

* Guar seed rose 99 rupees to 6,054 rupees per 100 kg at Jodhpur in Rajasthan.

CHANA

Indian chana, or chickpea, futures fell as expectations of better sowing in the winter months and higher area under summer-sown pulses weighed on sentiment.

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

* The September contract for chana fell 0.54 percent to 3,159 rupees per 100 kg.

* “It is expected to fall further by the end of the session as higher area under cultivation and rains are keeping prices under pressure,” said Reddy.

* Local demand for chana flour is likely to pick up in the coming days, ahead of Ganesh Chaturthi, a local festival.

* Spot chana rose 26 rupees to 3,318 rupees per 100 kg in Delhi. (Reporting by Meenakshi Sharma; Editing by Jijo Jacob)

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