MUMBAI (Commodity Online):Firm trend continued for Chana last week even as some profit booking was observed at higher levels. Low production prospects kept sentiments firm for the commodity.
Expected fall in production in Chana and overall Pulses was reported as per 2nd Advanced Estimates.
Pulses output is expected to fall by 5.26% to 17.29 mln tonnes vs 18.24 mln tonnes in 2010-11. Chana production is expected to fall by 6.8% to 7.66 mln tonnes as compared to 8.22 mln tonnes last year.
Lower acreage contributed for this fall as per reports (Chana acreage reportedly fell by ~4% to 89.57 lakh ha vs 93.41 lakh ha same period last year.
As per Rajasthan farm department’s first advance estimates for Rabi crops, Chana output is estimated down 7.8% at 14.76 lakh tonnes in 2011-12 season vs 16 lakh tonnes in 2010-11.
Output in Maharashtra in 2011-12 is seen down 42% at 7.5 lakh tn, while Karnataka’s 2011-12 output is seen at 4.98 lakh tn compared to 6 lakh tn last year.
Reports of decline in Pulses production especially Tur from states like AP, Maharashtra and Karnataka due to reported lower rainfall activities there, could support Chana rates in medium term
As per IPGA latest reports, Pulses production during current fiscal is expected to fall by 5-7% from 18.3 million tonnes in 2010-11 due to inadequate rains in some growing areas. A fall in production reports in Pulses could provide medium to long term uptrend for the commodity.
Latest reports from Australia indicates a rise in production there by 15000 tonnes to 3.94 lakh tonnes in 2011-12. The other major producers for Pulses namely Myanmar, Australia and Canada are likely to report a fall in Pulses production due to adverse weather.
The Indian imports are likely to get costlier in coming months which could support Chana rates. Shifting to other more lucrative crops like Cotton and soyabean have resulted in lower acreage for chana.
Courtesy:Religare Commodities
