Indian chana, or chickpea, futures rose on Monday on value buying, though significant stocks and conducive weather for sowing and adequate soil moisture restricted the upside. Chickpea is a rabi crop for which sowing starts in October. Key growing areas have received ample rainfall, which is expected to smoothen the sowing process.
Farmers have started sowing chana in the major cultivating regions. The December chana contract was up 0.86 percent at 3,153 rupees per 100 kg at 0919 GMT on the National Commodity and Derivatives Exchange (NCDEX). The contract has fallen more than 5 percent between September 13 and November 9.
"Some buying at lower levels is supporting the upside in prices, but it is unlikely to sustain the uptrend because sowing is progressing well in the leading cultivating states," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities. Spot chana fell 12 rupees to 3,050 rupees per 100 kg in Delhi. "Chana prices may trade with downward bias during the week ahead. Expectation of higher acreage for the season amid sufficient stocks with the traders could keep sentiment weak," Kotak Commodities said in a research note. India has raised the price the government must pay to farmers for buying next year's chana to 3,100 rupees per 100 kg from 3,000 rupees a year earlier.
GUAR Indian guar seed futures fell due to higher spot supplies, mounting stocks and sluggish overseas demand. Supplies from the new harvest have started coming into local markets in small quantities and will increase in the coming weeks. Guar seed production is expected to be higher due to an expansion in area under cultivation and good rains, spot traders said. The December contract was down 2.18 percent at 4,930 rupees per 100 kg on the NCDEX.