Guar seed complex despite of revival in monsoon continues to trade firm and we have seen at lower levels buying tends to emerge as far as chana is concerned after gap down opening we have seen smart recovery taking place during the day. Wheat continues to trade in narrow range along with maize.

With revival in U. S., Europe and Germany we may see demand for guar gum may improve during days to come, in spot market because of revival in monsoon sentiments are still not very bullish but underlying fundamentals for the complex remains very strong.

Domestic traders are estimating that recent revival in monsoon will boost the acreage of wheat, but if one looks at the parity and compare prices of CBOT and NCDEX. The landing cost of wheat from U. S. would be around Rs. 1300/1320 quintal which is very high as compared to persisting prices.

Chana, rumors of Punjab Government might come up with notification that stock limits in all the grains and pulses would be implemented might cause some sell off initially in the pulse. The expected stock limit is pegged at 100 quintals per wholesalers.

Chana today arrivals are 8000 bags and prices were trading between Rs. 2280-2300/quintal. Prices were marginally weak in today's morning session.

We recommend buying wheat at dips for the day, Guar seed we also are of same view that dips of percent or two shall be bought. Chana we expect prices to trade up for the day as good buying from millers would lent support to the falling chana prices.