Chana looks southward

COMMODITY SPIKES

Almost stagnant physical demand coupled with the expectations of favourable weather conditions in the next few days has pushed the chana market into the red. The last week witnessed drastic fall in near-month futures with the market closing below Rs 2,200 a quintal mark, down by Rs 65.

Commodity analysts said the commodity could see another fall of Rs 30-40 a quintal next week. There was no demand from millers and with increasing arrival of green vegetables in the market, demand for chana had fallen, they added.

To add to the market woes, imports from Australia have also begun. In the last one month, chana prices have slipped by almost 7 per cent from Rs 2,357 a quintal to Rs 2,195. Except for the first trading day of the last week, the entire week saw a free fall in the futures.

Chana acreage has been reported in the negative territory. Market experts said that December rains were crucial for better yield. On the National Commodity and Derivatives Exchange (NCDEX), the contract for December delivery closed on the weekend at Rs 2,195, down 3.22 per cent from the previous week's close of Rs 2,268 a quintal.