Weather aberrations continue to cap the upside in Guar seed futures with rains in Northern Rajasthan, Haryana guar seed bulls were seen losing their grip in yesterday’s trading session where as wheat finally managed to move up and clocked gain of percent in yesterdays trading session, Internationally prices of maize moved up after China reported that their maize production will decline. Chana prices continue to hover in narrow range.

Chana today arrivals stood at 7000 tonnes and stronger demand from millers ahead of festival season continue to support prices. Spot prices in Delhi stood at Rs. 2350/quintal.

Guar seed futures after clocking sharp gains fell during evening session as reports of rains in Haryana kept bear’s active in the market in near term seen trading in narrow range between 2115-2200 for October contract. With recovery taking place in U. S. and Europe exporters are optimistic on demand outlook in coming months.

Wheat, due to lack of supply spot prices jumped. Arrivals in Delhi mandi were 10000-11000 bags in comparison with
15000-20000 bags that lent support to the prices.

Weather conditions have improved during last fortnight in Northern Rajasthan which has changed sentiments in guarseed and Guar gum however fundamentals of the commodity are intact.

We expect prices of guarseed to trade sideways to down, however we don’t remain very bearish and October contract can be bought around levels of Rs. 2100-2125. Wheat prices may trade sideways to up for the day. Chana we continue to hold our buy at dips outlook.