Chana fuyures traded firm during yesterday’s trading session as the counter witnessed some buying as well as selling yesterday. Strong festive demand supported wheat prices during yesterday’s trading session.

Chana arrivals are 7000-8000 bags at Delhi’s Lawrence Road Mandi. The Spot price is expected to open at Rs. 2320/quintal almost same as yesterday due to fight between bulls and bears.

The spread between Chana Spot price (Delhi) and Yellow Pea Spot price (Kanpur) have further marginally reduced by Rs. 20-25/quintal mainly due drop in Delhi Spot price of Chana and increase in Yellow Peas Spot prices by Rs. 10-15/quintal.

State-run PEC has invited bids for sale of 1,390 tonnes of imported tur and chana in order to meet the festive demand. PEC said it would sell 570 tonnes of tur and 820 tonnes of chana grown during the 2008 and 2009 crop year. This previous year stock consists of Australain Chana which is priced at Rs. 2350-2400.

Wheat prices rose by 10 percent and 10.6 percent per bushel on CBOT and Minneapolis respectively due to short Speculation there. The Hard red spring Wheat is finally coming down the home stretch in regions like France, UK and Germany and bumper produce is expected in terms of better yield and quality.

We expect chana futures may remian firm and any dowside should be looked up as a good buying oppurtunity.

Fundamentals for wheat are looking strong on account of continuous festive demand. We recommend buying at dips. Guar complex too is expected to remain firm and we expect to see some upside later during the day and we recommend to buy at dips for this counter