MUMBAI (Commodity Online): Firm sentiments prevailed for Chana as low level buying activities supported the rates that had fallen significantly over last few days.
Trend likely to remain volatile for Chana as overall winter season demand remained weak with demand getting adversely affected due to elections in few states. Arrivals from the Southern states continued.
Lower Pulses production prospect reports kept supporting prices while lack of significant demand prevented a major uptrend.
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 but short term trend looks weak.
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
Higher sowing figures in domestic/International markets for Chana have kept pressure on prices. Better sowing activities reports from Rajasthan, MP and Maharashtra have been reported. Better production prospect for chana is there for chana while the prospects are down for other Pulses.
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
