Revival in monsoon seems to be playing important factor in downside of Guar Complex, Chana built up in stocks along with stock limits imposed seems to be the major factor which has triggered sell off in yesterday's trading session. Wheat was seen trading in thin range, due to slack demand we have seen some correction taking place in Maize prices.

Government reportedly is planning to release 3 million tonnes of wheat in the open market which will stabilize prices. India has procured 25.13 million tonnes of wheat in 2009/10 marketing year that began in April, up from 22.6 million tonnes in the previous year.

Guarseed prices have corrected yesterday on the back slack demand of Guargum from Europe and China and mainly on the back of pick up in monsoon activity in Northern Rajasthan which can result in some improvement in already grim production scenario.

Chana arrivals in Delhi continue to pressurize prices is estimated to be at 8000-10000/quintal amidst yesterdays unsold
2000/quintal. Demand from millers continue to remain weak at the same time talks of stock limits might get imposed in Madhya Pradesh also seen hurting the prices Overall sentiments continues to remain bearish in Chana.

Guar seed we may see maximum decline of Rs. 30-40/quintal we recommend to cover short positions at those levels. Chana futures after steep correction can bounce back but government intervention are major negative factor for prices. Wheat and maize prices are likely to trade sideways to down for the day.

U. S. soybean futures rose 0.6 percent on Tuesday after a 3 percent drop the previous day amid concerns that Chinese stateowned firms may be allowed to walk away from money-losing commodity derivative trades, where as in India it went down sharply as good rains in Rajasthan, UP and Gujarat the key regions for Mustard seed crop have led to an expectation of better mustard seed sowing in the months to come, leading to bearish sentiment in the overall oil segment

Improvement in the rains in the last week has had good effect on the soybean crop. These delayed rains will lead to increase in yield as well as the oil content in the standing crop. The crop expectation has suddenly become optimistic with estimates ranging from 9 mmt to 11mmt, almost more than 10% as compared to last year. This year the new soybean season will start with a carry of 4 - 5 lac MT. USDA has estimated the Indian crop at 10 MMT.

Mustard seed is likely to get benefited the most from recent rains and it may result in bumper crop of Mustard seed this year in India.

Palm oil due to strong exports number from Indonesia and Malaysia and expectation of improvement in domestic demand may limit the downside. Downside in other oilseeds are playing important factor which has caused correction during yesterday trading session.

From last two days, area of north Gujarat has received good rainfall because of which the prices of castor seed have remained weak. The prices in the spot market have gone down by around Rs. 5. in spot .Last week around 200 to 250 ton of physical trade in castor seed was reported.

After the a day of correction we may see bounce back but outlook for the day is sell on rise rather than bargain hunting as weak demand coupled with bumper Soy crop in U. S. might limit the upside in oilseeds.