Guar, Pulses And Grains Market Watch By Nirmal Bang Securities

Guar, Pulses And Grains Market Watch By Nirmal Bang Securities      Chana futures surged 2-2.5% during yesterday's trading session mainlly due to a surge in spot price by Rs. 50/quintal and it also witnessed some short covering coming during the day. Guar complex too showed some strength mainly due strong fundamentals finaaly working in its favor.

Chana arrivals are 10000 bags at Delhi's Lawrence Road Mandi. The Spot price is expected to open at Rs. 2350/quintal down Rs. 25/quintal from yestearday's closing Spot price, as we expect somre selling pressure might come in at the beginng of the trading day at the Spot market.

The spread between Chana Spot price (Delhi) and Yellow Pea Spot price (Kanpur) have increased by Rs. 60-80/quintal to Rs. 560-580/quintal, mainly due increse in Spot price of Chana by Rs. 75 during yesterday's trading session.

Demand for Chana on miller's end is expected to increase and stay firm mainly due to festive season, as besan used in sweets can only be of processed Chana Dal and not of Yellow Peas, as they are a bit sour in their natural way.

Sugarcane farmers might move towards Wheat and Paddy sowing due to more MSP 850/quintal and 1080/quintal respectively against 185/quintal for sugarcane, that might increase the coming production level.

Strong fundamentals of guar seed triggered buying in spot and futures market also. Reports of 70% drop in Indian production lead to buying in this commodity, guargum despite of slack international demand prices continued to trade up.

Chana is expected to trade sideways to up on account revival in demand is expected from miller's end on account of ongoing and forthcoming festive season. We suggest going long on Chana futures at dips. Guar complex is expected to show some firmness and we recommend buying at dips for this complex. Wheat futures too may remain firm during the day and we recommend buying at dips