MUMBAI (Commodity Online): After climbing more than 10 percent last week, Chana futures have witnessed profit booking earlier in the week but ended firm on Tuesday tracking spot markets and fall in arrivals, analysts said.
Chana February futures at National Commodity and Derivatives Exchange of India (NCDEX) has fallen slightly this week by Rs 30 to close at Rs 3597 on Tuesday. However, expected fall in pulses production in general and chana in particular is providing firm support to prices, analysts added.
India’s pulses production may fall by 5.26% to 17.29 mn tonnes in 2011-12 compared to 18.24 mn tonnes in 2010-11. Chana production may fall by 6.8% to 7.66 mn tons, according to forecasts.
Chana acreage was lower at 4.11 percent till January 27 and stood at 89.57 lakh hectares as compared to 93.41 lakh hectares in the same period previous year.
Rabi harvesting is expected to begin soon and could put pressure on prices.Chana prices could witness a mixed trend on Wednesday as increased supplies in spot markets could limit gains on account of lower crop production, Market sources said that only 25 trucks had arrived on Wednesday, however, supplies are expected to pick up on higher price levels and hence a moderation in prices are expected.
Chana prices are expected to fall in early trade on increased supply in the spot market though concern over decline in output and an expected rise in spot markets could reverse the trend, analysts said.
Chana is the main Rabi Pulse crop grown in India, sowing of which is done during October-December, and harvesting begins in January. Sowing of Chana began on a brisk note; however, the progress was not satisfactory in Maharashtra, Karnataka, UP, Bihar and AP and thus acreage has declined drastically.
