Indian chickpea hits six-week high; sugar down

Indian chana, or chickpea, futures extended gains on Wednesday to hit their highest level in six weeks on concerns over production due to a sharp drop in the area under cultivation. As on February 6, farmers had cultivated chana on 8.53 million hectares, compared with 10 million hectares a year earlier.
The April contract on the National Commodity and Derivatives Exchange (NCDEX) closed 1.1 percent higher at 3,645 rupees per 100 kg, after rising to 3,669 rupees earlier in the day, the highest level since December 31. Chana futures could ease on Thursday on profit-taking.
SUGAR Sugar futures fell on ample supplies, though hopes that the government will provide subsidy for raw sugar exports restricted the downside. India's cash-strapped sugar mills, waiting for the government to approve export subsidies, are being forced to dump supplies in the domestic market to raise cash to pay cane farmers, pulling down local spot prices to 4-1/2 year lows. At 1227 GMT, the key March contract was quoted 0.26 percent lower at 2,646 rupees per 100 kg. India is considering giving export incentives for 1.4 million tonnes raw sugar, Food Minister Ram Vilas Paswan said on Wednesday.
OILSEEDS AND SOYAOIL Soyaoil futures dropped on sluggish demand and a drop in Malaysian palm oil prices, while soyabeans extended losses on poor export demand for soyameal. Malaysian palm oil futures edged down on Wednesday to a near one-week low as concerns over waning demand from key customers turned investors wary. The key April soyaoil contract was 0.93 percent down at 587.10 rupees per 10 kg. The April soyabean contract closed 0.7 percent lower at 3,374 rupees per 100 kg, while the April rapeseed contract eased 0.1 percent to 3,290 rupees per 100 kg.
GUAR SEED Indian guar seed futures extended losses to hit a contract low on sluggish export demand for guar gum and ample supplies. The March contract closed 2.9 percent lower at 3,692 rupees per 100 kg, after falling to 3,671 rupees earlier in the day. The contract is likely to edge higher on Thursday on bargain buying.
JEERA Indian jeera, or cumin seed, futures rose on buying at lower levels, though an improvement in supplies from new season crop capped the upside. The key March jeera contract rose 0.9 percent to close at 14,065 rupees per 100 kg.