Business Standard

Chana futures fall below spot market prices

Related News

have seen a in the last two weeks. After commodity futures market regulator, the Forward Markets Commission (FMC), imposed a 10 per cent margin on buy-side trades (futures), prices crashed 15 per cent. In the spot market, prices are higher compared to futures.

However, prices are now stabilising and imported containers of chana (chickpeas) and other pulses have started coming in, resulting in softening of spot prices. However, prices in the spot market have fallen only by 10 per cent during the period.

Chana prices were rising in futures, but there were wide-scale complaints that speculators are rigging prices. Although chana’s availability was a concern, there were some fundamentals that were pushing prices. The sharp jump in futures, that was putting rising pressure on prices in the physical market, prompted to ask exchanges, mainly NCDEX, to impose 10 per cent margin on chana buying on September 28 and since then prices have crashed almost 20 per cent.

Futures prices came down from high of Rs 3,661 a quintal on September 27 to Rs 3,097 a quintal (down 15.4 per cent) yesterday and in spot market, prices have come down from Rs 3,625 to Rs 3,258 a quintal (down 10.1 per cent) during the same period.

“However, high prices of chana will incentivise farmers to increase acreage under the crop when sowing for the next rabi season begins after Diwali,” said Bimal Kothari, vice-president of India Pulses and Grains Association, an apex body of pulses industry and trade.

Chana is majorly a rabi crop. A trader with a multinational trading company, which also imports pulses in India said, “Sharp fall in futures prices was due to high margin and after that huge mark-to-market losses let to selling. Futures prices have not fallen so sharply due to supply constraints.”

The has also tightened stock limits for chana, leading to correction in prices including on futures exchanges.

New chana crop will enter markets in early February and till then, India will need one million tonnes to meet the consumption, where half of that is being met by imports. As supply from imports starts coming in, spot prices will also converge with futures, the trader said. On Wednesday, prices went up by almost two per cent in futures and physical market.

Read more on:   
|
|
|
|
|
|

Read More

Sugar falls on weak demand

Prices fell due to rising supplies from mills

Quick Links

 

Market News

Reliance Petroinvestments' appeal adjourned by SAT till Sept 30

Sebi in May 2013 had imposed a penalty of Rs 11 cr on Reliance Petroinvestments in an insider trading case

Today's picks- 3 September 2014

Nifty, Bank Nifty, Bharti Airtel, Tech Mahindra & Tata Power

Let's make some money

Market experts say booking profits could be unwise. If you are nervous, go for dividend-yield stocks

Steel firms increase prices

This comes amid a rise in transportation costs and high iron ore prices; long-steel producers keep prices unchanged

Rubber imports set to soar

Military junta of Thailand, world's largest exporter of rubber, recently decided to release 200,000 tones of stock pile

Back to Top