The Hindu Business Line : Guarseed: Price rise unlikely

Chennai May 20 Fundamental factors for guarseed are not supportive for any rise in prices, while an improvement in demand could provide support to chana futures.

A bearish undertone is likely to see guarseed futures trade in ranges but no major decline is seen as the futures are already trading at very low level, according to Angel Commodities outlook for commodities.

With monsoon expected to set in at least a week ahead of the schedule date of June 1, guarseed production is likely to be higher during the 2007-08 season starting July. This was one of the reasons for lack of demand in the spot market, while on the other hand, exporters are waiting for the dollar to gain against the rupee.

On Saturday, spot guarseed ruled at Rs 1,742.75 a quintal, while its June contracts were quoted at Rs 1,750.

Chana spot prices are expected to decline in the medium term due to availability in Rajasthan and low demand. But if demand improves for chana dal, then millers could provide support to chana. Currently, weak consumer demand has led to lower offtake by millers, who also have ample stocks with them.

During the weekend, Chana spot was quoted at Rs 2,190 a quintal, while June futures closed at Rs 2,271.

In the edible oil complex, weak sentiments are expected to prevail with imports casting pressure. Lower export of Malaysian palm oil is providing support to bears and the Centre's decision to keep the tariff value on edible oil imports was expected to keep a leash on the prices.

The commodities firm also projected crude prices to rule firm this week.