Indian guar hits over 1-wk high, seen extending gains on lower arrival

(Reuters) – Indian guar futures hit their highest level in more than a week on Tuesday and are expected to extend gains in the next trading session on lower arrivals in the spot market. Oilseeds and soyoil may trade lower on Wednesday, extending falls.

Guar

The February guar seed contract ended higher 4.15 percent at its intra-day high of 5,025 rupees per 100 kg on the National Commodity and Derivatives Exchange (NCDEX), a level seen last on Feb. 1.

“Guar should open higher tomorrow as arrivals are coming down,” said Chowda Reddy, a senior analyst with Inditrade Derivatives and Commodities.

Guar arrivals normally start in October and peak in December, before falling in February.

OILSEEDS

Rapeseed fell due to higher area under cultivation, while soyoil and soybean declined due to weak overseas leads.

The key March soybean contract ended down 0.68 percent at 3,859 rupees per 100 kg on the NCDEX.

The March soyoil contract ended down 0.75 percent at 681.85 rupees per 10 kg, while the rapeseed contract for April eased 0.74 percent to 3,331 rupees per 100 kg.

CHICKPEAS

Indian chana is expected to extend gains on Wednesday on continued short-covering.

Buying is advised at 3,020 rupees, for a target of 3,080 rupees, with a stop loss at 3,000 rupees, said Reddy.

The April chana contract ended higher 1.17 percent at 3,038 rupees per 100 kg.

CUMIN SEEDS

Indian jeera fell due to higher production estimates in western Gujarat state, and weighed down by higher stocks.

The actively traded jeera contract for March delivery ended 1.11 percent lower at 11,857.50 rupees per 100 kg on the NCDEX.

SUGAR

Indian sugar futures ended lower due to profit-taking after gaining more than 4.2 percent since the start of the month on expectations of incentives for the sector.

The key March contract ended down 0.5 percent at 2,751 rupees per 100 kg on the NCDEX.

Industry is expecting the government to announce incentives anytime soon on the production of raw sugar to help exports.

India has asked mills to pay at least 220 rupees per 100 kg to cane growers from Oct. 1, 2014, when the new sugar marketing year begins, compared with earlier 210 rupees.

TURMERIC

Indian turmeric futures ended up due to lower production estimates.

The most-actively traded turmeric contract for April delivery ended up 0.33 percent at 7,274 rupees per 100 kg on the NCDEX.