Chana

FUNDAMENTALS 

Government finally suspended futures trading in chana along with 3 other commodities and settlement will be made at yesterday’s closing price. Amid subdued trading activity Chana prices remained unchanged at Tuesday’s level across the major cash markets, while eased marginally in benchmark Delhi market despite of lower arrivals. Arrival in Delhi (Lawrence road) declined to 35-40 motors from 40-45 motors, while stood steady in Bikaner at 4,000 bags. Demand from millers and traders remained subdued in the market. Akola and Latur market remained closed on Wednesday for Akshaya Tritiya. Poor offtake in dals further pressured the prices. Thus, a range bound movement is expected in prices in near term. Further, due to the recent cyclone (Nargis) which devastated Myanmar, the pulses shipment from therre may be affected which may support the prices of pulses in medium term, besides weakening rupee against dollar, which make imports costlier. Also the importers are not finding parity at the prevailing prices due to which the pace of imports is slowing down, whereas depleting stock position and lower production of Chana will aid prices in the long term.

WEATHER

Dry weather in Rajasthan favours arrival and movement of chana.

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