India Guar Higher On Export Demand; Chana Up Over 1 Pct.

India's guar futures were higher on Thursday afternoon due to export demand for guar gum, good local demand and declining arrivals, analysts said.

"Guar futures look strong. Demand from both local and overseas market is very good. Arrivals have also come down to 40,000 bags in spot," said Chowda Reddy, senior analyst at JRG Wealth Management.

At 1:44 p.m., the most-active February guar seed NGUG1 was up 1.02 percent at 2,882 rupees per 100 kg.

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.

In the Jodhpur spot market in Rajasthan, guar seed was up 21 rupees to 2,795 rupees per 100 kg.

Guar seed output in Rajasthan, the country's top producer, may come in at 1.49 million tonnes in 2010/11, the state government's estimates showed.

CHANA:

India chana futures extended gains for the fourth session amd rose by more than a percent to their highest level in a week, helped by lower arrivals in the spot market, and rising prices of substitute pulses, analysts said.

The most-active chana for March delivery NCHc2 on NCDEX was trading 1.04 percent higher at 2,710 rupees per 100 kg, after hitting a high of 2,726 rupees, a level last seen on Jan. 28.

"Arrivals are a bit on the lower side today. They were at 30-35 motors in Lawrence Road mandi (as against an average of 70-75 motors)," said Ajitesh Mullick, head of agri-research with Religare Commodities.

Analysts said rising prices of substitue commodities such as tur and urad also helped chana prices.

Pigeon peas prices have risen sharply in the past one month as traders were forecasting lower output due to adverse weather.

Source : reuters.com