Chana likely to rise

COMMDITY SPIKES

Continuing weak demand in the domestic market is not letting chana spot as well as futures prices to rise despite the festive season being so close. Last week, the chana near-month contract on the National Commodity and Derivatives Exchange (NCDEX) remained range-bound. However, the last trading day of the week saw a price cut of around Rs 30 a quintal. According to analysts, demand in the overall pulses market is slightly weak. They added that an expected sales spurt on the wholesale and on the retail front due to coming festivals might provide support and revive the market by the middle of this week. Marketmen said if demand revived in the physical market, prices would bounce back.

On Saturday, the contract for August delivery closed at Rs 2,336 a quintal compared the previous week's close of Rs 2,368, down 1.35 per cent.

Guarseed firms up

Steady demand from China and the US has toned down the impact of good weather and increased acreage on guarseed this year. Moreover, reports from Pakistan, the world's second largest producer, suggest recent heavy rainfall in the Sindh province is likely to affect production there. According to analysts, this will put export pressure on India and support the market sentiment. India is expecting a bumper crop this year. The sowing operations in Haryana and Rajasthan are in full swing. On the National Commodity and Derivatives Exchange, the August contract of guarseed closed at Rs 1,752 a quintal on Saturday against the previous week's close of Rs 1,716, up 2.1 per cent.