Guar, Chana Futures Hit Contract High.

 MUMBAI: India's guar futures rose to a fresh contract high on Friday afternoon due to robust demand for guar gum from exporters to complete overseas orders and active buying from stockists and millers amid falling arrivals, analysts said.

"Export demand is good and is likely to remain firm in coming days. Total guar gum exports are expected to be higher this year because of a recovery in global demand," said Badruddin Khan, analyst at Angel Commodities .

At 1:42 p.m., the most-active February guar seed was up 0.84 percent at 2,763 rupees per 100 kg after hitting a fresh contract high of 2,785 rupees per 100 kg. Khan expects February contract to touch 2,850 rupees per 100 kg in the short term.

Daily arrivals in the spot market have reduced to 50,000-55,000 bags (of 100 kgs each) against 70,000 bags last week, traders and analysts said.

India is the world's largest producer and exporter of guar gum and supplies 80 percent of the global demand.

Industrial guar gum, used as a controlling agent in oil wells to facilitate drilling and prevent fluid loss, is the most sought after guar product and accounts for about 45 percent of the total demand.

CHANA: India chana futures hit a contract high helped by falling arrivals in the domestic market amid wedding demand, coupled with rising prices of substitutes such as urad and tur, analysts said.

"Overall sentiment is firm in pulses. Demand from the local market is firm ahead of the wedding season. Arrivals are expected to get delayed by 10-15 days this year due to the unseasonal rains," said Anand Sarwade, a chana trader in Gadag, Karnataka.

The most-active February contract on the National Commodity and Derivatives Exchange (NCDEX) was trading 2.46 percent higher at 2,705 rupees per 100 kg.

In Delhi, a major trading centre in Madhya Pradesh, chana was 47.95 rupees up at 2,606 rupees per 100 kg.

The next marriage season in India will run from February through May.

Source : economictimes.indiatimes.com