Short covering at lower levels and some demand from the stockists kept overall trend for Chana positive as lower production prospects kept supporting the price.
Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Esti-mates. Pulses output is expected to fall by 5.25% to 17.28 mln tonnes vs 18.22 mln tonnes in 2010-11. Chana production is expected to fall by 6.7% to 7.65 mln tonnes as compared to 8.22 mln tonnes last year.
Guar kept hitting the Upper Circuit as Fundamentals continued to remain strong. Demand remained good and that supported the prices. Postponement of launch of August contract for Guarseed and Guargum by NCDEX have been notified.
Overall Fundamentals remained Bullish from good exports, lower production and low stocks but some more short term corrections cannot be ruled our as per traders due to the above factors.
The launch of August 2012 contract has been postponed by NCDEX.