Commodity Spikes

Millers fuel chana

Chana futures are expected to be strong this week on the back of millers buying to meet the festival demand. However, analysts said yellow peas, which are a substitute for chana, will restrict the upside movement of the chana market. Last week, after a long steady market, chana futures scaled up to close at Rs 2,289 a quintal from the previous week's close of Rs 2,231 a quintal, up 2.6 per cent. The recent cyclical rains in Andhra Pradesh, Karnataka and Maharashtra stoked bullish sentiments into the chana market. The rains, marketmen said, were reported to have hit urad and moong crops, whose harvest has begun.

According to the analysts, there is a possibility of a short-term bullishness in the pulse market as fundamentals, including imports and new arrivals, suggest a bearish trend.

They added that this week, the October-bound delivery could see support at Rs 2,273 a quintal where as the resistance level may cross the mark of Rs 2,300 to Rs 2,323 a quintal. Sowing of chana will start in a month's time and harvest will begin in February.

Rains dampen guar

The European Union's actions on guargum imports from India and the recent rains in western Rajasthan are taking their toll on guarseed futures.

Last week, the near-month contract fell by around Rs 40 a quintal despite a strong opening. Exports to European nations are still continuing. The market fell despite the expectation of a drop in production this season. Commodity analysts said fundamentals were strong in guarseed. The next week is expected to see sideways movement, with the resistance level at Rs 1,774 a quintal and the support level at Rs 1,731 a quintal. The country expects a total crop of around 65 lakh bags. Last year's output was 75 lakh bags.

According to market reports, crop from Haryana, a major guarseed-growing state, will set the right tone into the market. Crop from the state is expected by the first week of October. Market estimates suggest that crop size will be reduced to 20-21 lakh bags against the earlier estimate of 30 lakh bags. On the National Commodity and Derivatives Exchange, October futures closed on Saturday at Rs 1,745 a quintal against the previous week's close of Rs 1,782 a quintal.