MUMBAI (Commodity Online):Chana expected to open lower on Thursday due to higher arrivals from the fresh crop amid poor spot demand.
According to the Rajasthan farm department’s first advance estimates for Rabi crops, Chana output is estimated 7.8% lower at 14.75 lakh tonnes in 2011-12 season against 16 lakh tonnes in 2010-11.
Chana prices during the intraday might decline initially as arrivals of new crop commenced in Maharashtra and reports of rains in North India may favor the crop yield, according to Angel Commodities.
In NCDEX chana February contract on Wednesday closed down by 0.75% at Rs.3,145 per 100 kg against the previous close.
Chana sowing across India as on January 13th 2012 is 5.23% down at 8.722 million hectares as compared to 9.22 million hectares in the same period previous year. Highest decline in area is witnessed in Maharashtra where sowing is down 23%, while in Karnataka it is down by 19%.
Indian government is targeting total pulses output of 17 mln tn in the current crop year that started July 2011, down marginally from last year's record production of 18.09 mln tn on account of 10% decline in Kharif Pulses output.
Although government has targeted higher Rabi Pulses output, it is difficult to achieve the same taking into consideration the sowing progress and prevailing weather conditions.
