Guar rises on bargain-buying; chana falls

MUMBAI: Guar seed futures rose on Thursday after five sessions of losses on bargain-buying while concerns over the quality of the crop in Gujarat due to rains also supported the upside.


Rains in Rajasthan, the top producer state, would be beneficial for the crop. However, in Gujarat, where harvesting operations have started, they could damage quality, traders said.

At 0816 GMT, the November contract was up 2.98 per cent at Rs 5,880 per 100 kg on the National Commodity and Derivatives Exchange. It fell 26 per cent between Sept. 12 and Sept. 25.

"Some buying is seen at lower prices after the recent drop, but in the long term the trend looks weak because production is higher and stocks are also sufficient," said Surendra Kumar Yadav, a trader from Hanumangarh, Rajasthan.

Spot guar rose 220 rupees to 6,307 rupees per 100 kg at Jodhpur in Rajasthan.

CHICKPEAS

Chana, or chickpea, futures were lower on mounting stocks and expectations of better sowing in the winter months. Estimates of higher output of summer-sown or kharif pulses due to good rains also weighed on sentiment, analysts said.

Production of kharif pulses has been estimated at 6.01 million tonnes in 2013-14. The October chana contract was down 0.26 per cent at 3,060 rupees per 100 kg.

"It is seen weak because sowing of chana is expected to be better due to sufficient soil moisture while kharif pulses output is also estimated higher," said an analyst from Angel Commodities.

Chickpea is a rabi crop and sowing will begin in October. The key growing areas have received ample rainfall, which would smoothen the sowing process. Spot chana rose Rs 24 to Rs 3,116 per 100 kg in Delhi.