Guarseed and guargum posted marginal upside after sharp downfall during last week on bargain hunting and traders thought that last week's correction was slightly overdone as fundamentals of Guar complex still remain positive. Chana prices rose in line with good demand from millers which triggered sharp upside in the complex. Whereas wheat and maize continued trading in thin range.

The Centre is believed to have decided to abolish import duty on rice to augment supply in the domestic market, after Sources said that in a meeting last month, the empowered Group of Ministers (eGoM) on food, headed by Finance Minister Pranab Mukherjee, recommended that import duty on rice be cut to zero from the current 70 per cent till September 2010. This may trigger some selling pressure in wheat also.

Guarseed futures after taking severe beating during last week went up on bargain hunting and ting of fresh buying coming in from spot markets, Guargum exports have been weighing on complex but with optimistic economic data's coming from Europe, China and U. S. it seems that in coming months demand for guargum may improve which may cap the downside in overall guar gum and seed.

Chana today arrivals in Delhi markets are 7000 quintal which is less and spot prices were Rs. 2340/quintal and yesterday we have seen good demand from millers which triggered good buying in Chana.

Outlook for Guarseed and Chana for the day remains positive we recommend to buy at decline of percent in both of them, prices may move up further from these levels, as far as wheat and maize is concerned we may see some selling pressure during the day.

Crude palm oil futures prices fell on fresh selling by traders in tandem with weakening global trend but soy complex bucked the trend and moved up on short covering after steepest decline during last week.

China, the world's top soybean importer, bought record quantities in the first half of 2009, pushing up benchmark Chicago Board of Trade prices to a nine-month high in June. The market has since fallen around 25 percent on hopes of the highest-ever production in the United States of around 3.2 billion bushels. The Chinese government, which bought record quantities of soybeans from farmers last year, is expected to continue with its program when the new crop harvesting starts from October.

China soybean imports in the year to August are expected to be around 42 million tonnes from an estimated 39 million tonnes in the previous year.

Sluggish demand from domestic market and revival in monsoon were the main reason for oilseeds to move up sharply but we don't expect major upside we can see some moer short covering during intraday but upside might get capped.

The benchmark November palm oil futures KPOc3 on Bursa Malaysia Derivatives Exchange was at 2,151 ringgit a tonne, up 0.99 percent

We expect oilseed complex to perform better and may trade up during the day and palm oil in particular looks strong for the day. Soybean and Soyoil too may post upside of a percent or two.