If profit taking continues, Chana may be capped

India's chana futures edged up on Wednesday on firmness in kharif pulses and concerns acreage may fall in a key producing state, though profit-taking capped the rise. The December contract closed up over 1% at 2657 rupees per quintal. Traders are not ruling some profit booking at these levels but mention the fact that overall domestic demand is expected to rise in coming days.

Since the beginning of winter session of Parliament, spiraling of food-grain price has become top issue and government is considering various measures to control food prices. Some policy measures are anticipated for pulses industry. Despite government measures, prices may remain bullish in long term as the production of chana is expected to be down due to lower acreage. Unfavourable weather condition in Rajasthan is leading to poor sowing of Chana this season.

Courtesy: AUM Capital Market Pvt. Ltd.

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