MUMBAI (Commodity Online): Chana futures expected to open lower on Tuesday due to subdued demand in the domestic markets amid hopes of ample supply from the coming crop season.
In NCDEX chana January contract closed down 0.38% at 3,341 rupees per quintal against the previous close.
Overall trend expected to remain volatile for Chana in the short term as moderate arrivals and slight fall in demand could limit the uptrend but fall in production reports in Pulses could provide medium to long term uptrend for the commodity, according to Religare Commodities.
Higher sowing figures in domestic/International markets have kept pressure on the prices. Better sowing activities reports from Rajasthan, MP and Maharashtra have been reported. Better production prospect for chana is expected for next year.
Forward Market Commission (FMC) has scrapped special margin of 10% on Chana on long side on all running contracts with effect from Friday December 09, 2011.
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.
