MUMBAI (Commodity Online): Chana futures expected to open higher on Monday on short covering by the traders on the back of firm festive demand amid lower acreage in the producing regions.
In NCDEX chana January contract last week closed higher by 3.11% at Rs.3443 per quintal. Chana prices are expected to remain firm on account of lower acreage under Chana cultivation and thereby fears of lower output. In the short term prices may trade in the range of Rs 3250 per qtl and Rs 3600 per qtl in the short term (2 -3 weeks), according to Angel Commodities.
According to the Farm Ministry area sown under Rabi pulses as on 5th January 2012 is down by 1.20% to 14.066 million hectares as compared to 14.238 million hectares in the same period previous year.
Chana sowing till January 5th 2012 is 5.23% down at 8.72 million hectares as compared to 9.22 million hectares in the same period previous year.
Further, unfavorable weather in Central and Southern India may lower Chana yield in the coming season. Except in Rajasthan, all other major producing states i.e MP, Maharashtra, Karnataka and AP are likely to witness a fall in output in the coming season harvesting of which would begin after mid January.
According to the first advance estimates, Kharif Pulses output for 2011- 12 season is down by 9.6% at 6.43 mt. Tur output estimates is up by 0.35% while moong & Urad is down by 21% & 16% respectively.
