MUMBAI (Commodity Online): Chana futures expected to continue uptrend this week on lower supplies amidst negligible carry over stocks. Lower output concerns and firm domestic demand also likely to support chana futures to trade higher.
Projection of pulses production for current year is lower which is supportive for the uptrend. Major speakers at pulses conclave also proclaimed weaker domestic supply scenario in pulses. During this year pulse imports are also likely to be higher to meet consumption requirement for the current year.
Unfavorable weather conditions in the producing regions could limit the harvesting of chana. In NCDEX chana March contract closed higher by 2.61% on Tuesday at Rs.3541 per quintal, after hitting a contract high of Rs.3568 per 100 Kg against the previous close.
As per second advance estimates, pulses production is likely to drop by 1 million tons which is majorly contributed by chana. Production estimates for 2011-12 crop is 10 lakh tons lower compared to last year. This occurred due to lower acreage and shift of acreage under Kabuli chana in Madhya Pradesh and Andhra Pradesh regions. Arrivals might pick up from Madhya pradesh regions very soon which could change the price trend.
